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Brunei
Wednesday, July 6, 2022
28.5 C
Brunei
Wednesday, July 6, 2022
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    Saudi Aramco buying USD69B stake in chemicals giant SABIC

    RIYADH (AFP) – Saudi state oil giant Aramco said on Wednesday it is buying a majority stake in petrochemicals behemoth SABIC for USD69.1 billion, a deal that gives the Crown Prince’s ambitious reform programme a massive cash boost.

    The 70-per cent stake purchase effectively merges the kingdom’s two largest companies, handing its top sovereign wealth fund around the same amount it had expected from a much-delayed Aramco IPO.

    The deal, mooted last year, lends Crown Prince Mohammed bin Salman greater fiscal flexibility to pursue his “Vision 2030” reforms agenda.

    “Saudi Aramco today announced the signing of a share purchase agreement to acquire a 70 per cent majority stake in Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund of Saudi Arabia, in a private transaction for… USD69.1 billion,” Aramco said in a statement.

    The company did not say how it would finance the deal, one of the biggest in the global industry.

    Saudi Energy Minister Khalid al-Falih hailed it as a “historic deal”, saying the biggest winner from the transaction was the national economy.

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