Saudi Aramco, the world’s largest oil company, has announced its completion of the 70% stake acquisition in the petrochemical company Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund (PIF), according to a press release.
The completion of the acquisition is set to enhance Aramco’s petrochemical strategy by integrating upstream production with SABIC feedstock; expanding capabilities in procurement, supply chain, manufacturing, marketing and sales; complementing geographic presence, projects and partners; and increasing the resilience of cash flow generation.
This integration is part of Aramco’s long-term plans in the petrochemical industry downstream strategy to grow its integrated refining and petrochemicals capacity and create value from integration across the hydrocarbon chain.
Amin Nasser, CEO at Aramco, said, “We are excited to complete this transaction. It is a significant leap forward which accelerates Aramco’s Downstream strategy and transforms our company into one of the major global petrochemicals players. The strategic integration of our Upstream production and Downstream chemicals feedstock production with SABIC’s chemicals platform is expected to create opportunities for selective integration synergies that support growth and add value for shareholders.”
In 2019, Aramco and SABIC recorded a combined petrochemicals production volume of nearly 90 million tonnes.