Sabic to maintain Saudi listing after Aramco takeover

Saudi Arabia's state-owned petrochemicals giant Sabic will continue to be listed on the country's Tadawul stock exchange after state-controlled oil company Aramco completed its acquisition of a controlling 70pc stake in the firm.

Sabic said it will continue to operate within its legal regulatory framework and maintain its governance practices.

Aramco bought its 70pc stake in Sabic from the state's Public Investment Fund (PIF) for 259.1bn riyals ($69.1bn), or 123.40 riyals per share. Aramco will pay the PIF in installments from August this year until April 2028. The remaining 30pc of shares in Sabic will be publicly traded.

The deal "is consistent with Aramco's long-term downstream strategy to grow its integrated refining and petrochemicals capacity, and create value from integration across the hydrocarbon chain," Aramco, Sabic and the PIF said in a joint statement.

Sabic aims to maintain a strong investment grade credit rating on a standalone basis.

Sabic is a major producer of fertilizers and petrochemicals such as ethylene, ethylene glycol, aromatics, methanol and polymers.

Other Saudi petrochemical companies including Sipchem, Advanced Petrochemical and Tasnee are also listed on the Tadawul stock exchange.

By Muhamad Fadhil