Riyadh – Mubasher: Saudi Arabian Oil Co, known internationally as Saudi Aramco, is mulling over a raft of financing options for the acquisition of a major stake in the Saudi Basic Industries Corporation (SABIC), informed sources said.

Aramco is also implementing due diligence on the potential transaction, which is expected to reach $70 billion, the sources told Bloomberg News.

On Monday, the Wall Street Journal (WSJ) said that the world's largest oil producer has backtracked on the idea of raising bonds to finance SABIC’s acquisition, replacing it with syndicated facilities and bonds, in addition to other option of “staggering payments over a period of time, it said,” the news agency noted.

Aramco declined to comment on the WSJ’s story.

On a side note, Aramco further noted that it may carry out financial structure next year after the deal will be finished.

“The idea of structuring the deal like a leveraged buyout, has two advantages … [of which] it would significantly reduce the amount of financial disclosure required by Aramco. Second, SABIC already has a track record as a bond issuer, reducing the amount of preparatory work required,” Bloomberg reported.

In July, Aramco stated that it set its eyes on the Public Investment Fund’s (PIF) 70% stake in SABIC.