27 March 2019
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DETAILS
- Advances Saudi Aramco’s
integrated refining and petrochemicals business,
provides SABIC with
a strategic energy industry shareholder
and expanded growth opportunities. - Aligns strengths and interests
of two major global companies
to enhance competitiveness
and address fast growing petrochemicals. - Currently, Saudi Aramco and SABIC
have petrochemicals production capacity
of 17 and 62 million tons per annum respectively.
Saudi Aramco today announced the signing of
a share purchase agreement
to acquire a 70% majority stake in
Saudi Basic Industries Corporation (SABIC)
from the Public Investment Fund of Saudi Arabia,
in a private transaction
for SAR 259.125 billion
(or SAR 123.39 per share),
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 no plans
to acquire these remaining shares.
The transaction is subject to certain closing conditions,
including regulatory approvals.
Headquartered in Riyadh, Saudi Arabia,
SABIC has global operations
in over 50 countries with 34,000 employees.
In 2018, SABIC’s consolidated production volume
across its various business units was
* 75 million metric tons, and
* recorded net income of USD $5.7 billion,
* annual sales of USD $45 billion, and
* total assets of USD $85 billion.
The acquisition is in line with
Saudi Aramco’s 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,
of which 2-3 million barrels per day
will be converted into petrochemical products.
This Downstream portfolio will consume
significant quantities of Arabian crude oil.
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H.E. Yasir Othman Al-Rumayyan,
Managing Director,
Public Investment Fund of Saudi Arabia
“This is a win-win-win transaction
and a transformational deal for
three of Saudi Arabia’s most important economic entities.
It will unlock significant capital for
PIF’s continued long-term investment strategy,
underpinning sectoral and revenue diversification
for Saudi Arabia.
Furthermore, it will introduce a strategic owner
that can add considerable value to SABIC
and all its shareholders, while capitalizing on
SABIC’s strong capabilities to unlock the opportunities
for growth that Saudi Aramco,
a key player in energy markets around the world,
can offer.”
*************************************************
Amin Nasser,
President & CEO, Saudi Aramco
“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.”
************************************************
Abdulaziz Al-Judaimi,
Senior Vice President of Downstream,
Saudi Aramco
“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.”
WWW.CHEMWINFO.COM BY KHUN PHICHAI
