Home Industry Energy Aramco begins taking SABIC stake in $69bn of block trades Aramco will pay $24.8bn this week as a first installment in the deal by Bloomberg June 15, 2020 Saudi Aramco began executing the acquisition of a 70 per cent stake in Saudi Basic Industries Corp. (SABIC) through block trades worth SAR259bn ($69bn) on Sunday. A total of 2.1 billion SABIC shares changed hands on the Saudi exchange in four transactions as the oil company moves ahead with the purchase from the kingdom’s Public Investment Fund. Aramco will pay SAR93.3bn ($24.8bn) this week as a first installment in the deal, Maaal news website reported, citing unidentified people. Under the terms of the acquisition, Aramco will pay the remaining $44bn in four installments until September 2025. The purchase of SABIC is a key part of Aramco’s strategy of expanding from oil production into chemicals, and it also serves as a way to help PIF raise cash to fund its investment plans. The initial agreement involved Aramco paying SAR123.4 ($32.85) a share for SABIC, a value 39 per cent higher than the price of the stock on Sunday. SABIC lost 0.6 per cent to trade at SAR88.50 in Riyadh on Sunday, while Aramco declined 0.3 per cent to SAR32.25. “The deal completion is on-track with expectations to be finalized before the end of the second quarter,” Aramco said in a statement. “All necessary pre-closing regulatory clearances have been obtained.” Tags acquisition chemicals oil PIF SABIC Saudi Aramco 0 Comments You might also like Saudi Arabia’s PIF to acquire 54% stake in MBC Group Saudi Arabia posts $8bn Q3 deficit as lower oil prices weigh Will they or won’t they? Talk of Saudi cutting oil prices for Asia Saudi Arabia’s Hassana to back $2bn Brookfield Middle East fund