Abstract
In a move that will instantly make it one of the world’s largest chemical companies, the Saudi state oil company Saudi Aramco is buying a 70% stake in the petrochemical maker Sabic from the Public Investment Fund of Saudi Arabia, the country’s sovereign wealth fund, for $69 billion. Aramco has been pushing into petrochemicals in recent years to diversify the Saudi economy away from crude oil exploration and export, especially given the expectation of slowing fuel demand in the coming decades. Late last year, Aramco pledged $100 billion toward petrochemical projects, including a proposed crude-to-chemicals complex in Saudi Arabia with Sabic. The company recently started up a $20 billion joint venture, Sadara, with Dow Chemical. H.E. Yasir Othman Al-Rumayyan, managing director of the Public Investment Fund, says the purchase “will introduce a strategic owner that can add consid Sabic had sales last year of $45 billion. It’s the world’s fourth-largest
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