Saudi Aramco completes $69 billion SABIC stake deal, extends schedule
RIYADH/DUBAI: Saudi Aramco has completed its purchase of a 70 per cent stake in petrochemicals company Saudi Basic Industries for $69.1 billion and extended the payment period by three years to 2028, providing a cushion against weak oil prices.
The deal values Saudi Basic Industries Corp (SABIC) at 123.39 riyals ($32.90) per share, 27.5 per cent above the company’s share price of 89.40 riyals, as the coronavirus outbreak has hurt demand for petrochemicals products and dented SABIC’s shares.
“It is a significant leap forward, which accelerates Aramco’s downstream strategy and transforms our company into one of the major global petrochemicals players,” Aramco CEO Amin Nasser said in a statement.
SABIC is the world’s fourth-biggest petrochemicals company.
