Saudi Aramco has invited banks to pitch for an advisory role on the potential acquisition of a strategic stake in Saudi Basic Industries Corp (SABIC), two sources with direct knowledge of the matter told Reuters.
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).
The process is in the initial stages and Aramco may or may not decide to go ahead with the deal, the sources told Reuters.
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.
