The long awaited Saudi Aramco acquisition of Saudi Basic Industries Corporation (SABIC) is finally here.
With a statement to the press, Aramco CEO Amin Nasser reported that Aramco has acquired a 70 percent stake in SABIC, with an estimated value of $69.1 billion. Aramco's CEO Nasser reiterated that the "deal is a major step in accelerating Saudi Aramco's transformative downstream growth strategy".
Aramco has acquired the shares from the Saudi Public Investment Fund (PIF) for a share price of 123.39 riyals, which is a slight discount from SABIC's closing price on Wednesday. Analysts have been positive about the closing price, based on the fact that the acquisition is seen as a strategic, long-term investment, especially given that SABIC is one of the most defensive, non-cyclical segments.
