RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2019-03-29 11:30:00

SAUDI ARAMCO PAYS $69.1 BLN

SAUDI ARAMCO PAYS $69.1 BLN

MEOG - Saudi Aramco announced the signing of a share purchase agreement to acquire a 70% majority stake in Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund of Saudi Arabia, in a private transaction for $69.1bn. The remaining 30% publicly traded shares in SABIC are not part of the transaction, and Saudi Aramco has no plans to acquire these remaining shares. The transaction is subject to certain closing conditions, including regulatory approvals.

Headquartered in Riyadh, Saudi Arabia, SABIC has global operations in over 50 countries with 34,000 employees. In 2018, SABIC's consolidated production volume across its various business units was 75 million metric tons, and recorded net income of $5.7bn, annual sales of $45bn, and total assets of $85bn.

H.E. Yasir Othman Al-Rumayyan, Managing Director, Public Investment Fund of Saudi Arabia 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 & CEO, 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."

Abdulaziz Al-Judaimi, Senior Vice President of Downstream, Saudi Aramco said: "Saudi Aramco's downstream strategy is focused on meeting global customer needs by securing outlets for our crude oil through the expansion and growth of our refining system and deepening its integration with petrochemicals production. We are pursuing partnerships and acquisitions where we create long-term value, and developing groundbreaking crude-oil-to-chemicals technologies. SABIC is a good strategic fit and a solid platform to support our continued investment for future growth in petrochemicals – the fastest growing sector of oil demand."

The acquisition is in line with Saudi Aramco's long-term strategy to drive growth through an enhanced Downstream portfolio by increasing global participated refining capacity from 4.9 million to 8-10million barrels per day by 2030, of which 2-3 million barrels per day will be converted into petrochemical products. This Downstream portfolio will consume significant quantities of Arabian crude oil.

---


Earlier:

SAUDI ARAMCO PAYS $69.1 BLN
2019, March, 27, 11:50:00
SAUDI'S OIL FOR CHINA UP 28.5%
China's crude oil imports from Saudi Arabia surged 28.5% year on year to 1.56 million b/d in February, surpassing Russia to become the top crude supplier in the month, latest data from the General Administration of Customs showed.
SAUDI ARAMCO PAYS $69.1 BLN
2019, March, 27, 11:40:00
SAUDI ARAMCO NEED $150 BLN
Aramco’s gas expansion strategy needs $150 billion of investment over the next decade as the company plans to increase output and later become a gas exporter, Nasser had said in November.
SAUDI ARAMCO PAYS $69.1 BLN
2019, March, 22, 10:15:00
SAUDI'S OIL WILL DOWN
Saudi Arabia will supply its clients with significantly less oil than they requested in April, extending deeper-than-agreed oil production cuts into a second month, a Saudi official familiar with the policy said.
SAUDI ARAMCO PAYS $69.1 BLN
2019, March, 20, 10:00:00
SAUDI ARABIA INVESTMENT $23 BLN
Saudi Arabia said on Tuesday it would spend 86 billion riyals ($23 billion) to boost the quality of life in the capital Riyadh, increasing green space and recreational areas and installing 1,000 works of art across the city.
SAUDI ARAMCO PAYS $69.1 BLN
2019, March, 13, 11:10:00
SAUDIS INVESTMENT FOR INDIA
India is seeking investment from Saudi Arabia to build emergency crude reserves that will act as a buffer against volatility in oil prices and supply disruptions for the third-largest oil consumer.
All Publications »
Tags: SAUDI, ARAMCO, SABIC