Saudi Arabia’s sovereign wealth fund has sold its 70% share in Saudi Basic Industries Corp (Sabic) to Saudi Aramco, the world’s largest oil producer.
The Public Investment Fund (PIF) will net $69.1 billion from the sale, making it one of the largest deals in the global chemical industry.
The PIF’s managing director, Yasir al-Rumayyan, has described it as a “transformational deal for three of Saudi Arabia’s most important economic entities”.
It will give the PIF the capital it needs to continue its plan to diversify its portfolio and lessen the kingdom’s dependence on oil exports.
Investors will also hope that the deal will lead to the much anticipated multi-billion dollar initial public offering (IPO) of Aramco which has been delayed by the ongoing talks with the PIF,
Aramco is also set to issue its first international bond as a way to help raise the capital needed for the Sapic acquisition and is reportedly ready to start meeting investors to promote the issuance.
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