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29th March 2019, Riyadh

Saudi Aramco to acquire 70% stake in Sabic

Sabic CEO Yousef Al Benyan. © Sabic Saudi Aramco, a Saudi Arabian national petroleum and natural gas company based in Dhahran, has signed a share purchase agreement to acquire a 70% majority stake in Sabic from the Public Investment Fund of Saudi Arabia. The agreed purchase price for the shares totalled SAR 259.125 billion, which is equivalent to US$ 69.1 billion.

The remaining 30% publicly traded shares in Sabic are not part of the transaction, and Saudi Aramco has advised that it has no plans to acquire these remaining shares. The transaction is subject to certain closing conditions, including regulatory approvals.

Sabic is a leader in diversified chemicals headquartered in Riyadh, Saudi Arabia. The company manufactures on a global scale in the Americas, Europe, Middle East and Asia Pacific, making different kinds of products, including chemicals, plastics, agri-nutrients, metals, and specialties. It has more than 40,000 employees worldwide and operates in more than 50 countries.

“I believe the potential rewards of this deal are clear and support our vision to be the preferred world leader in chemicals,” commented Yousef Al-Benyan, Sabic Vice Chairman and CEO. “Sabic will benefit from the additional scale, technology, investment potential, and growth opportunities Saudi Aramco will bring as a global leader in integrated energy and chemicals production, while remaining focused on meeting the needs of our customers and the creation of value for all our shareholders.”

“Sabic’s relationship with Saudi Aramco goes back to our inception in 1976. Solidifying our relationship in this way strategically positions SABIC and Saudi Aramco to accelerate exciting developments in our global chemicals business.”

The acquisition will be a key pillar for Sabic and Saudi Aramco in the development of the petrochemicals industry in Saudi Arabia and reinforces aligned objectives to create a preferred global chemicals company. The transaction will also strengthen Saudi Aramco's position as one of the world's largest integrated energy and chemical companies.

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