PIF Selects Goldman Sachs, Bank of America Merrill Lynch and Michael Klein Selected to Advise on SABIC sale

Saudi Arabia’s sovereign wealth fund has chosen Goldman Sachs, Bank of America Merrill Lynch and Michael Klein as advisers on its planned sale of a stake in petrochemicals firm SABIC to Saudi Aramco, sources familiar with the process told Reuters.

Citigroup Inc has reportedly won the mandate to advise Saudi Basic Industries Corp (SABIC). Reuters previously reported that JPMorgan and Morgan Stanley are advising Aramco.

Riyadh-listed SABIC, the world’s number-four chemical firm, is 70 percent owned by the Public Investment Fund, Saudi Arabia’s top sovereign wealth fund. It has a market capitalisation of 385.2 billion Saudi riyals ($102.7 billion).

Aramco and Saudi Arabia’s petrochemical arm, SABIC, both have their North American headquarters in Houston. SABIC is currently developing a $10 billion petrochemical plant near Corpus Christi with Exxon Mobil and Motiva recently bought out Royal Dutch Shell for full ownership of the Port Arthur Refinery.

Experts on Saudi business told Arab News that there is “a sound industrial logic to a potential move for SABIC, and that the effect on the IPO plans would not necessarily be negative. Long term, a deal with SABIC could make Aramco a more attractive proposition for global investors.”