Dhahran, Saudi Arabia – Saudi Aramco has completed its share acquisition of a 70% stake in Saudi Basic Industries Corp. (Sabic) for a total purchase price of SAR 259.125 billion (€61.3 billion).
The shares, valued at SAR123.39 each, were purchased from the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, on 17 June.
The move is part of Aramco's long-term downstream strategy to grow its integrated refining and petrochemicals capacity and create value from integration across the hydrocarbon chain, the company said in a 17 June statement.
In addition to integrating Aramco's upstream production with Sabic feedstock, the transaction will also help expand the company's capabilities in procurement, supply chain, manufacturing, marketing and sales, Aramco added.
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.
