Saudi Arabia’s state-controlled energy giant Aramco has reached a $69.1 billion deal to purchase a majority stake in petrochemicals firm SABIC from the kingdom’s sovereign wealth fund.
The deal will see Aramco purchase the 70-percent stake in SABIC held by Saudi Arabia’s Public Investment Fund in a share purchase agreement. It will expand Aramco’s footprint in refining and petrochemicals and inject cash into PIF, which underpins ambitious plans to remake Saudi Arabia’s economy.
Aramco and PIF announced the news on Wednesday shortly after CNBC and other news outlets confirmed the transaction. The deal is not yet finalized and remains subject to closing conditions and regulatory approvals.
“This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities. It will unlock significant capital for PIF’s continued long-term investment strategy, underpinning sectoral and revenue diversification for Saudi Arabia,” Yasir Othman Al-Rumayyan, managing director of the PIF said in a statement.
This story is developing. Please check back for updates.