State-owned Saudi Aramco bought 2.1 billion shares of SABIC on the Saudi exchange, known as Tadawul, on Sunday as it finalized the acquisition of a 70% stake in the petrochemical giant, Reuters reported, citing sources and market data. Aramco made four transactions on Monday in Tadawul, worth SAR259,125 billion ($69.1 billion), Tadawal data showed.
According to the sources, the transactions are part of the acquisition deal agreed in 2019. Saudi sovereign fund, the Public Investment Fund (PIF) will use the cash from the shares sale to invest in the kingdom’s programs to diversify its economy away from oil. Saudi Aramco has also been strengthening its footing in refining and other downstream sectors.
Last month, Aramco reportedly talked with the PIF to restructure the deal as SABIC’s market value fell by over 40% amid the collapse of oil prices. The transactions on Sunday, however, suggested that the agreement had not changed although it remained unclear whether both parties agreed on some changes in the payment structure.
