Saudi Aramco buys SABIC shares on market as it completes acquisition

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Saudi Aramco buys SABIC shares on market as it completes acquisition GlobeBusiness

Four sources confirmed the transactions were part of the Aramco acquisition agreed in 2019, which will be one of the biggest in the global chemical industry once completed.The shares are being sold by the Saudi sovereign fund, the Public Investment Fund , giving it more cash to invest in the government program to diversify the economy away from oil.

Sources told Reuters in May that Aramco had been looking to restructure the deal after SABIC’s market value fell more than 40 per cent owing to an oil price slump. Sunday’s transactions suggested the deal price had not changed, but it was unclear whether the structure for making payments to PIF had been revised.

Sunday’s share trades involved cross-transactions, also known as special deals on Tadawul, which are executed at an agreed price between a buyer and seller, without those involved. “The deal completion is on-track with expectations to be finalised before the end of the second quarter,” Aramco told Reuters in a statement when asked about the transactions. “We will make a completion announcement in due course.”Three of Sunday’s deals were completed at 123.40 riyals a share, and the fourth at 123.20 riyals, prices that were similar to last year’s agreed price of 123.39 riyals a share.

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