Aramco completes record $70bn acquisition of SABIC

Combines strengths and interests of two global companies to accelerate Aramco’s downstream strategy and leverage petrochemicals growth opportunities.

Aramco completes the acquisition 70% stake in Saudi Basic Industries Corporation (SABIC) for a total purchase price of SAR 259.125 billion (US$ 69.1 billion).

Aramco will push back the bulk of instalments until after 2022 and delay the final one by three years until 2028 due to the difficult global scenario produced by COVID-19.

The completion of the transaction enhances Aramco’s presence in the global petrochemicals industry, a sector expected to record the fastest growth in oil demand in the years ahead. Combined, in 2019 Aramco and SABIC recorded petrochemicals production volume of nearly 90 million tonnes, including agri-nutrient and specialty products.

The acquisition is one of the biggest ever in the global petrochemicals industry and is is consistent with Aramco’s long-term Downstream strategy to grow its integrated refining and petrochemicals capacity.

“We are excited to complete this transaction. It is a significant leap forward which accelerates Aramco’s Downstream strategy and transforms our company into one of the major global petrochemicals players. The strategic integration of our Upstream production and Downstream chemicals feedstock production with SABIC’s chemicals platform is expected to create opportunities for selective integration synergies that support growth and add value for shareholders,” said Amin Nasser, President & CEO, Aramco.

Aramco’s chemicals strategy will be enhanced by transforming it into one of the major global petrochemicals players; integrating upstream production with SABIC feedstock; expanding capabilities in procurement, supply chain, manufacturing, marketing and sales; complementing geographic presence, projects and partners.