Oil giant Saudi Aramco completes $69 billion acquisition of stake in Sabic

Saudi Aramco, the world’s biggest oil exporter, has completed a deal it reached last year to buy a 70% stake in petrochemical maker Saudi Basic Industries Corp. from the Saudi Public Investment Fund for US$69.1 billion.

“The completion of the transaction enhances Aramco’s presence in the global petrochemicals industry, a sector expected to record the fastest growth in oil demand in the years ahead,” Aramco said in a June 17 statement. “Combined, in 2019 Aramco and Sabic recorded petrochemicals production volume of nearly 90 million tonnes, including agri-nutrient and specialty products.”

Aramco said the acquisition of the Sabic stake is consistent with its long-term downstream strategy to grow its integrated refining and petrochemicals capacity and create value from integration across the hydrocarbon chain. “It specifically enhances [our] chemicals strategy by transforming Aramco into one of the 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,” the company said.

Saibc expects also to benefit from Aramco’s downstream chemicals feedstock production, and ability to invest in and execute major growth projects at a very large scale, Aramco said.

The deal was first announced in August 2018 and formalized in March 2019.