Saudi Basic Industries Corporation (SABIC) signed on Sunday an agreement to acquire Shell’s 50 percent stake in Saudi Petrochemical Company (SADAF) for $820 million (SAR 3.08 billion).
The deal value represents Shell’s stake in the company’s net assets, the petrochemical producer said in a statement to Tadawul.
SABIC added that the acquisition comes as part of its strategy to enhance high-yield investments, and is set to be closed by the end of this year after regulatory approvals.
SADAF, which was established in 1980 and began operations in 1984, is equally owned by SABIC and Shell Arabia. Sadaf produces 4.7 million tons annually of building-block petrochemical, including ethylene, crude industrial ethanol, styrene monomer, ethylene dichloride, caustic soda, and methyl tertiary butyl ether.
SABIC also inked a memorandum of understanding with Shell Arabia to study available investment opportunities locally and overseas.
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