Riyadh - Mubasher: The world’s largest oil company, Saudi Aramco, announced on Wednesday that it has completed the acquisition of a 70% stake in the Saudi Basic Industries Corporation (SABIC) from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF).

The acquisition deal, subject to all necessary regulatory approvals, was concluded at a total value of SAR 259.1 billion ($69.1 billion), equivalent to a share price of SAR 123.3, according to a stock exchange statement. 

Saudi Aramco will fully consolidate SABIC’s financial results.

According to the statement, Aramco will pay the PIF in several instalments between August 2020 and April 2028. A total sum of $7 billion will be paid by Aramco on 2 August 2020, while the last payment of $1 billion will be made on 7 April 2028.

Following the acquisition, SABIC is seen to benefit from integration with Aramco’s upstream and downstream refining and chemicals businesses with a possibility to invest and implement huge growth projects.

Furthermore, the acquisition taps on Saudi Aramco’s chemicals strategy as it will elevate the oil giant into one of the largest global petrochemicals players, strengthen its geographic presence, projects, and partners, while increasing the ability to generate cash flow.