Jul 07, 2020 10:21 a.m.

Saudi Aramco completed the acquisition of a 70% stake in SABIC

Saudi Aramco and Public Investment Fund (PIF) started the takeover discussion in July 2018 and the successful outcome makes Saudi Aramco the new majority shareholder in SABIC.

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In an official letter published on Saudi Aramco’s official website on 17 June 2020, the company announced the completion of the takeover of a 70% stake in Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund (PIF). The transaction worth SAR 259.125 billion ($69.1 billion), equating to SAR 123.39 price per share.

Saudi Aramco and Public Investment Fund (PIF) started the takeover discussion in July 2018 and the successful outcome makes Saudi Aramco the new majority shareholder in SABIC and has the ability to elect the majority of SABIC’s director. 

In April 2019, there have also been reports that Goldman Sachs is appointed as a banking advisor in a “serious discussion” involving Saudi Aramco to acquire a 25% stake in the refining and petrochemical business of India’s Reliance Industries.

Saudi Aramco has been foreseeing growth in petrochemical business would be the main driver for oil demand in the longer term, and therefore, working to expand its footprint globally in this downstream sector to lessen the risk of high dependency on oil.     

Country

Saudi Arabia