Saudi Aramco has acquired 70 per cent shares of Saudi Basic Industries Corp (SABIC) for $69.1 billion.
The acquisition was done in four special transactions on Sunday.
Aramco issued a statement thereafter, according to Al Arabiya English:
“The deal completion is on-track with expectations to be finalised before the end of the second quarter.
“All necessary pre-closing regulatory clearances have been obtained.
“We will make a completion announcement in due course.”
Aramco signed a deal last year with Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), to take the majority shareholding in the petrochemicals company.
The payment for SABIC, the world’s fourth-largest petrochemicals firm, will be funded in part by four bonds issued by Aramco to the PIF.
Aramco indicated that 36 percent of the purchase price will be paid in cash.
It said 64 percent will be paid in the form of a seller loan.
Therefore, the proceeds to the PIF in the form of cash will amount to $500 million, and the five additional bonds will be worth $2.5 billion.
In March, Aramco received unconditional clearance from the European Commission for the acquisition, the last clearance required for the transaction.
The company reported a 25 percent fall in first-quarter net profit in May, below analyst estimates, as the coronavirus pandemic slashes global demand for petroleum products.
