Oilfield & Energies
Aramco looking to buy stake in SABIC 20th July 2018
Saudi Aramco yesterday confirmed that it is discussions to acquire a stake in SABIC. The move follows years of speculation that the two companies would merge.
“Consistent with the company’s strategy of rebalancing its portfolio by moving further into downstream and the petrochemical sector, the company has been evaluating a number of acquisition opportunities, both local and global,” Aramco said in a statement. “Saudi Aramco confirms that it is engaged in very early-stage discussions with the Public Investment Fund regarding acquiring a strategic interest in SABIC by way of a private transaction.”
Aramco is a driving force behind Saudi Arabia’s and the Middle East’s expansion in chemicals with a massive downstream investment program at home and overseas intended to almost triple its chemical capacity by 2030.
The Saudi government owns a 70% stake in SABIC and the rest is listed on the Saudi Stock Exchange. Aramco said that discussions are preliminary.