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SABIC (Riyadh, Saudi Arabia) announced that Saudi Aramco has signed a share purchase agreement to acquire a 70-percent 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 US$69.1 billion.

The remaining 30 percent 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.

“I believe the potential rewards of this deal are clear and support our vision to be the preferred world leader in chemicals,” says Yousef Al-Benyan, SABIC vice chairman and CEO. “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 adds, “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, SABIC says, will be a key pillar for SABIC and Saudi Aramco in the development of the petrochemicals industry in Saudi Arabia, and it reinforces aligned objectives to create a preferred global chemicals company. The transaction is also intended to strengthen Saudi Aramco's position as one of the world's largest integrated energy and chemical companies.