Saudi Aramco completes its $69bn acquisition of SABIC

Saudi Aramco recently announced the successful completion of its 70% stake in petrochemicals group, Saudi Basic Industries Corporation (SABIC). The stake was acquired from the Public Investment Fund (PIF) of Saudi Arabia and will provide the necessary cash to further advance Prince Mohammed bin Salman's plan to diversify Saudi Arabia's dependence on oil.

The Deal

Value: $69.1bn

Completed: 17 June 2020 (Announced 27 March 2019)

Financial Advisors to PIF (Seller): Goldman Sachs, Bank of America Merrill Lynch, HSBC

Financial Advisors to Saudi Aramco (Acquirer): J.P. Morgan, Morgan Stanley

Financial Advisors to SABIC (Target): Citi

“This is a significant milestone for three of Saudi Arabia’s most important entities. It provides capital for PIF’s long-term investment strategy as it drives the economic transformation and growth of Saudi Arabia; it supports Aramco’s continued growth in Downstream and enhances its international footprint; and, it provides SABIC a new strategic energy industry-focused shareholder with the ability to support growth projects." – H.E. Yasir Othman Al-Rumayyan, Governor, PIF