Saudi Aramco Acquires Sabic, the Largest Petrochemical Company in the Middle East
[Asia Economy Reporter Changhwan Lee] Saudi Arabia's state-owned oil company Aramco announced on the 17th (local time) that it signed a contract to acquire a 70% stake in the petrochemical company SABIC for $69.1 billion (approximately 84 trillion KRW).
SABIC is the world's 4th largest and the Middle East's largest petrochemical company by revenue. Aramco purchased SABIC shares held by the Public Investment Fund (PIF), the sovereign wealth fund owned by Crown Prince Mohammed bin Salman of Saudi Arabia.
The purchase price was 123.39 riyals per share (approximately 40,000 KRW), and Aramco acquired the stake through a block deal (large volume trading outside regular hours).
Amin Nasser, CEO of Aramco, stated, "Aramco has taken a significant step toward expanding its business into downstream sectors (petrochemicals and refining) and establishing itself as a leading company in the petrochemical industry."
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PIF, the largest shareholder of SABIC, is also evaluated to have stably secured a large sum of funds from the Saudi government, which owns Aramco, through this stock sale.
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