Saudi Basic Industries Corp (SABIC), the world’s fourth largest petrochemicals firm, said on Sunday it would establish a new unit to manage its agricultural investments.
The announcement comes as state oil giant Saudi Aramco continues talks to acquire the Public Investment Fund’s majority stake in SABIC for as much as $70bn.
Under the agricultural plans, SABIC will combine its stakes in companies in the sector that manufacture products including urea, compound fertilisers and phosphates.
These include 50 per cent of Ibn Al-Bitar, 33 per cent of GPIC, 30 per cent of Ma’aden Phosphate and 15 per cent of Ma’aden North Phosphate.
SABIC has also entered a deal with fellow listed firm Saudi Arabian Fertiliser Company (SAFCO) to integrate its 43 per cent stake into SABIC Agricultural Nutrient Investments following shareholder and regulatory approval.
CEO Yousef Bin Abdullah Al Bunyan said the plans would help the company achieve long-term sustainable growth and improve production under its 2025 strategy.
SABIC reported a 5.4 per cent rise in third quarter net profit last month citing higher average selling prices and increase in sale volumes.