production volume – Nearly 90 million tons
Aramco has announced the completion of its acquisition of a 70% stake in Saudi Basic Industries Corporation (Sabic) from the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, for a 259.125 billion riyals (259.770 billion dirhams), equating to 123.39 riyals (121 dirhams) per share. The deal enhances Aramco’s presence in the global petrochemicals industry, a sector expected to record the fastest growth in oil demand.
The acquisition of the Sabic stake is consistent with Aramco’s long-term downstream strategy to grow its integrated refining and petrochemicals capacity and create value from integration across the hydrocarbon chain. It specifically enhances Aramco’s chemicals strategy by transforming Aramco into major global petrochemicals players; integrating upstream production with Sabic feedstock; expanding capabilities in procurement, supply chain, manufacturing, marketing and sales; complementing geographic presence, projects and partners; and increasing the resilience of cash flow generation with synergistic opportunities. Sabic expects also to benefit from Aramco’s Downstream chemicals feedstock production, and the ability to invest in and execute major growth projects at a very large scale.
PIF Governor HE Yasir Othman Al Rumayyan, said: “This is a significant milestone for three of Saudi Arabia’s most important entities. “It provides capital for PIF’s long-term investment strategy as it drives the economic transformation and growth of Saudi Arabia, further benefitting the people of our country; it supports Aramco’scontinued growth in Downstream and enhances its international footprint; and, it provides Sabic a new strategic energy industry-focused shareholder with the ability to support growth projects.”
Amin Nasser, President and CEO, Aramco, said: “We are excited to complete this transaction. The strategic integration of our upstream production and downstream chemicals feedstock production with Sabic’s chemicals platform is expected to create opportunities for selective integration synergies that support growth and add value for shareholders.”
Yousef A Al-Benyan, Vice-Chairman and CEO, Sabic said: “The global scale and presence of Sabic, one of the world’s most significant diversified chemical companies, brings significant enhancements to Aramco. “We look forward to contributing to global chemicals growth, while continuing to support Saudi Vision 2030.”