Riyadh – Mubasher: Saudi Aramco which has been looking to purchase controlling stake in the Saudi Basic Industries (SABIC) may do so by acquiring a majority stake of 70% currently held by the Saudi Public Investment Fund (PIF), Reuters reported on Monday, citing informed but unnamed sources as saying.

Aramco had set its eyes on PIF's 70% stake in SABIC, however, if the talks for the entire stake fail, Aramco may still get over 50% in SABIC, making it a majority shareholder, the sources added.

Talks between the two parties are still in their early stages, they said.

On Friday, Saudi Aramco CEO Amin Nasser told Al Arabiya news channel that his company was eyeing a dominating stake in SABIC but that such an acquisition may delay the timing of its planned initial public offering (IPO). He added that a stake in the petrochemicals firm would diversify Aramco's revenues, making it less vulnerable to oil price volatility.

SABIC, which is listed on the Saudi Stock Exchange (Tadawul), is the world’s fourth-biggest petrochemicals firm with a market capitalisation of SAR 385.2 billion ($103 billion).