Riyadh – Saudi Aramco has signed a share purchase agreement to acquire 70% majority stake in Saudi petrochemicals and chemicals company Sabic for $69.1 billion (€61.3 billion).
The shares are being purchased from the Public Investment Fund of Saudi Arabia in a private transaction, Saudi Aramco said in a 27 March statement.
Aramco does not intend to purchase the remaining 30% publicly traded shares in Sabic in the future, according to its statement.
The transaction is subject to certain closing conditions, including regulatory approvals.
Headquartered in Riyadh, Sabic reported a net income of $5.7 billion on $45 billion sales in 2018.
The deal is “major step” in Aramco’s downstream growth strategy of integrated refining and petrochemicals, said Amin Nasser, president & CEO of Saudi Aramco.
“Sabic is a good strategic fit and a solid platform to support our continued investment for future growth in petrochemicals,” added Abdulaziz Al-Judaimi, SVP of Downstream, Saudi Aramco.
Aramco, he said, is pursuing partnerships and acquisitions “to create long-term value and develop ground-breaking crude-oil-to-chemicals technologies.”
Sabic’s product portfolio includes materials for the tire & rubber industry, among them polybutadiene, EPDM rubber and carbon black.
Saudi Aramco supplies a broad range of synthetic rubber materials via its Dutch-headquartered Arlanxeo subsidiary, as well as its Petro Rabigh and Sadara joint ventures in Saudi Arabia.