Aramco completes Sabic acquisition

15 June 2020
Aramco executed the acquisition of 2.1 billion of Sabic’s shares through block trades on 14 June

Saudi Aramco purchased 2.1 billion shares, or 70 per cent, of Saudi Basic Industries Corporation (Sabic) for SR259bn ($69.1bn) on 14 June, completing its planned landmark acquisition of the petrochemicals major from the kingdom’s Public Investment Fund (PIF).

Aramco executed the acquisition through block trades, with the shares changing hands on the Saudi Stock Exchange (Tadawul) in four transactions.

Aramco will pay SR93.3bn ($24.8bn) this week as a first instalment in the deal.

As previously announced, the price per share was SR123.4 ($32.8).

“The deal completion is on-track with expectations to be finalised before the end of the second quarter. All necessary pre-closing regulatory clearances have been obtained. We will make a completion announcement in due course,” Aramco told Al-Arabiya English in a statement.

Aramco and PIF signed a landmark deal in March 2019 for the Saudi energy giant to acquire the 70 per cent stake in Sabic for $69.1bn. The remaining 30 per cent of Sabic’s shares trade on the Tadawul.

The payment for Sabic, the world’s fourth-largest petrochemicals firm, will be funded in part by four bonds issued by Aramco to the PIF, as per reports last year.

The purchase of Sabic is a key part of Aramco’s strategy of expanding its business from oil and gas production into petrochemicals, and it also serves as a way to let PIF raise capital to fund its investment plans.

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