The world’s largest oil and gas company Saudi Aramco has confirmed that it is engaged in very early-stage discussions with the Public Investment Fund (PIF) regarding acquiring a strategic interest in Riyadh-based SABIC (Saudi Basic Industries Corporation) the diversified manufacturing company.
Saudi Aramco has insisted that these discussions are preliminary and there is no certainty that any such transaction will take place with the company active in chemicals and intermediates, industrial polymers, fertilisers, and metals, by way of a private transaction.
Saudi Aramco has also stated that it has no plans to acquire any publicly held shares of SABIC.
Saudi Aramco issued the statement following media speculation regarding its possible interest in acquiring an ownership position in the company.
Consistent with the company’s strategy of rebalancing its portfolio by moving further into downstream and the petrochemical sector in particular, the company has been evaluating a number of acquisition opportunities, both local and global, one of which involves SABIC,