Riyadh – Mubasher: The Saudi Arabian Oil Co, globally known as Saudi Aramco, has signed a deal with Hyundai Heavy Industries Holdings to acquire a 17% stake, or 41.66 million shares, in Hyundai Oilbank for $1.2 billion, according to Yonhap news agency.

The deal offers Aramco the option to purchase an additional 2.9% stake in Hyundai Oilbank, according to a regulatory filing issued by Hyundai Heavy Industries Holdings, the holding company of South Korea's largest shipbuilding conglomerate.

In late January, Hyundai Heavy agreed to sell a 19.9% stake in the South Korean smallest oil refiner, Hyundai Oilbank, for up to KRW 1.8 trillion to the world’s largest oil company.

Under the agreement, Saudi Aramco will be the second largest shareholder in Hyundai Oilbank, followed by Hyundai Motor Co. with 4.3%, while Hyundai Heavy Industries Holdings will retain a 74.1% stake.

In addition, Saudi Aramco is currently the biggest shareholder of South Korea’s major oil refiner S-Oil Corp.