Saudi Basic Industries Corp (SABIC) has obtained the regulatory approvals required for extending partnership with Japan Saudi Arabia Methanol Co. (JSMC) Inc. in Saudi Methanol Company (Ar-Razi) for 20 years.
JSMC will pay SABIC $1.35 billion in three installments until 2021. In addition, Ar-Razi’s 2019 financial results will be consolidated based on the new ownership structure, the petrochemical producer said in a statement to Tadawul on Monday.
“The financial impact will start in Q2 2019,” SABIC added.
SABIC owns 75 percent of Ar-Razi shares, while JMSC holds the remaining 25 percent.
In December 2018, SABIC extended its partnership agreement with JMSC, Argaam reported.
SABIC said it will buy a 25 percent stake in Ar-Razi from JSMC for $150 million and up its stake in the company to 75 percent.
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