SAUDI ARAMCO SIGNS SHARE PURCHASE AGREEMENT TO ACQUIRE 70% MAJORITY STAKE IN SABIC FROM PUBLIC INVESTMENT FUND
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27/03/2019
SABIC announced that Saudi Aramco signed today a share purchase agreement to acquire a 70% majority stake in SABIC from the Public Investment Fund of Saudi Arabia in a private transaction. The agreed purchase price for the shares is SAR 123.40 per share, totaling SAR 259.125 billion, which is equivalent to USD$ 69.1 billion.
The remaining 30% publicly traded shares in SABIC are not part of the transaction, and Saudi Aramco has advised that it has no plans to acquire these remaining shares. The transaction is subject to certain closing conditions, including regulatory approvals.
Yousef Al-Benyan, SABIC Vice Chairman and CEO, said: “I believe the potential rewards of this deal are clear and support our vision to be the preferred world leader in chemicals. SABIC will benefit from the additional scale, technology, investment potential, and growth opportunities Saudi Aramco will bring as a global leader in integrated energy and chemicals production, while remaining focused on meeting the needs of our customers and the creation of value for all our shareholders.”
Al-Benyan continued, “SABIC’s relationship with Saudi Aramco goes back to our inception in 1976. Solidifying our relationship in this way strategically positions SABIC and Saudi Aramco to accelerate exciting developments in our global chemicals business.”
The acquisition will be a key pillar for SABIC and Saudi Aramco in the development of the petrochemicals industry in Saudi Arabia, and reinforces aligned objectives to create a preferred global chemicals company. The transaction will also strengthen Saudi Aramco's position as one of the world's largest integrated energy and chemical companies.