Saudi Aramco acquires 17% of Korea’s Hyundai Oilbank

Saudi Aramco acquired a 17% stake in Hyundai Oilbank from Hyundai Heavy Industries Holdings, through its subsidiary Aramco Overseas Company B.V. (AOC), for nearly $1.2 billion.

The acquisition was approved by the competent regulatory authorities, the giant oil producer said in a statement.

The investment supports Saudi Aramco’s downstream growth strategy of expanding in profitable integrated refining, chemicals and marketing businesses, which enable Saudi Aramco to place crude oil and leverage its trading capabilities, the statement added.

Hyundai Oilbank was established in 1964 as a private oil refining company. The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a fully integrated refining plant with a processing capacity of 650,000 barrels per day.

Hyundai Oilbank’s business portfolio and its five subsidiaries include oil refining, base oil, petrochemicals and gas stations.