Saudi Aramco has signed a share purchase agreement to buy a 70% majority stake in SABIC from the Public Investment Fund of Saudi Arabia for $69.1 billion.
The remaining 30% publicly traded shares in SABIC are not part of the transaction, and Saudi Aramco has no plans to acquire these remaining shares. SABIC, headquartered in Riyadh, Saudi Arabia, has global operations in more than 50 countries and in 2018 its production volume across its various business units was 75 million metric tonnes.
Saudi Aramco says this acquisition is in line with its long-term strategy to drive growth through an enhanced downstream portfolio by increasing global participated refining capacity from 4.9 million to 8-10 million barrels per day by 2030.
Amin Nasser, president and CEO of Saudi Aramco, says: 'This transaction is a major step in accelerating Saudi Aramco's transformative downstream growth strategy of integrated refining and petrochemicals. SABIC is a world-class company with an outstanding workforce and chemicals capabilities. As part of the Saudi Aramco family of companies, together we will create a stronger, more robust business to enhance competitiveness and help meet rising demand for energy and chemicals products needed by our customers around the world.'
Saudi Aramco's senior vice president of downstream Abdulaziz Al-Judaimi adds: 'Saudi Aramco's downstream strategy is focused on meeting global customer needs by securing outlets for our crude oil through the expansion and growth of our refining system and deepening its integration with petrochemicals production.
'We are pursuing partnerships and acquisitions where we create long-term value and developing groundbreaking crude-oil-to-chemicals technologies. SABIC is a good strategic fit and a solid platform to support our continued investment for future growth in petrochemicals – the fastest growing sector of oil demand.'
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