Saudi Aramco completed a deal to acquire 2.1 billion shares (70%) of Saudi Basic Industries Corp (SABIC).

The purchase was made as part of 4 transactions on the Saudi Tadawul exchange. The deal amounted to 259.125 billion riyals or 69.1 billion US dollars (32.8 US dollars / share). The shares were sold by the Saudi Arabia Sovereign Fund (Public Investment Fund, PIF), the remaining 30% of SABIC remain under the control of PIF.

The purchase was announced in March 2019, promising to become one of the largest M&A deals in the global oil and gas industry. However, the market situation has changed dramatically for more than a year, and against the backdrop of the collapse of the oil market, the market value of SABIC fell by more than 40%. According to Reuters, in May 2020, Saudi Aramco was considering restructuring the deal. However, apparently, the transaction price has not changed, but it is unclear whether the structure for making payments in PIF has been revised. To implement the transaction, Saudi Aramco in 2020 attracted $ 10 billion of loan funds.

SABIC is the 4 th in size petrochemical company in the world. Acquisition of 70% SABIC corresponds to a long-term strategy for Saudi Aramco, aimed to stimulate growth by increasing the portfolio of oil refining capacities from 4.9 to 8-10 million barrels per day of oil by 2030. Of the planned 8-10 million barrels per day of oil, 2-3 million barrels per day will be used for petrochemical production.