Saudi Aramco has signed a £52.2billion deal to acquire a majority stake in petrochemicals firm Sabic from the country’s sovereign wealth fund.
Sabic is headquartered in the Saudi capital of Riyadh with operations in 50 counties around the world, employing 35,000 people.
The deal will see Aramco purchase 70% of the firm, currently held by Saudi Arabia’s Public Investment Fund (PIF) in a share purchase agreement.
It comes as part of Saudi Aramco’s plan to expand its downstream portfolio, including refining crude oil into petrochemicals.
Managing director of the Private Investment Fund, Yasir Othman Al-Rumayyan, said: “This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities.
“It will unlock significant capital for PIF’s continued long-term investment strategy, underpinning sectoral and revenue diversification for Saudi Arabia.
“Furthermore, it will introduce a strategic owner that can add considerable value to SABIC and all its shareholders, while capitalizing on SABIC’s strong capabilities to unlock the opportunities for growth that Saudi Aramco, a key player in energy markets around the world, can offer.”
Amin Nasser, president and CEO of Saudi Aramco said: “This transaction is a major step in accelerating Saudi Aramco’s transformative downstream growth strategy of integrated refining and petrochemicals.
“SABIC is a world-class company with an outstanding workforce and chemicals capabilities.
“As part of the Saudi Aramco family of companies, together we will create a stronger, more robust business to enhance competitiveness and help meet rising demand for energy and chemicals products needed by our customers around the world.”