Saudi Arabia’s Aramco has implemented the acquisition of 70% stake in Saudi Basic Industries Corp. (SABIC), the petrochemical giant along with buying 2.1 billion shares on Sunday.
According to sources, four transactions were executed on the SABIC shares priced between SR123.40 and SR123.20 riyal per share as Aramco moved ahead with the kingdom’s sovereign fund- Public Investment Fund (PIF). The acquisition was part of a deal late last year, announced on March 29, 2019 where Aramco had agreed for a major shareholding of SABIC for SR259.13 billion.
As per the deal, Aramco will be paying SR93.3 billion to the PIF in the first installment and the remaining $44 billion from Sept. 30, 2020 to Sept. 30, 2025.
The deal is supposedly the biggest chemical industry deals in the history with the aim of boosting Aramco’s growth, help the Public Investment Fund to raise cash, and expand from oil production to chemicals.
In a statement, oil giant Aramco said that the deal completion being on track and to be finalized before the end of the 2nd quarter as all the necessary pre-closing regulatory clearances are being obtained.