Saudi Aramco aims to buy PIF’s entire stake in SABIC

23/07/2018 Argaam

 

Saudi Aramco intends to buy a controlling stake in Saudi Basic Industries Corp. (SABIC), with the aim to take the entire 70 percent stake owned by Public Investment Fund (PIF), Reuters reported, citing sources familiar with the matter.

 

In case Aramco’s plan to buy PIF’s total stake does not materialize, it could end up with a more than 50 percent in SABIC, making the oil firm a majority owner, the sources said.

 

No final decision has been made on the size of the stake and the discussions are at a very early stage, they added.

 

Last week Aramco said it was working on a possible purchase of a “strategic interest” in SABIC from the Kingdom’s sovereign wealth fund.

 

Tadawul-listed SABIC, the world’s fourth-biggest petrochemicals firm, has a market capitalization of SAR 385.2 billion.

 

The acquisition, if it goes through, would affect the timing of Aramco’s planned initial public offering (IPO), chief executive Amin Nasser said on Friday.

 

The potential acquisition will help increase Saudi Aramco’s downstream market share and protect against oil price fluctuations, analysts told Argaam.

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Most Read