Saudi Aramco is considering investing in SABIC through a private purchase. The company seems to have no plans to acquire publicly held shares.

SABIC is the world’s fourth-biggest petrochemicals company. It is 70 % owned by the Public Investment Fund (PIF) of the Saudi Arabian kingdom and has a market capitalization of about $103 billion. The size of the stake Saudi Aramco is interested in acquiring is unknown.

The government wants to sell up to 5 % of Saudi Aramco. The acquisition could attract more investors for the Initial Public Offering (IPO) or the stock market launch. This IPO could be the biggest in history and is a central part of the plans of Crown Prince Mohammed bin Salman to diversify the economy of Saudi Arabia beyond oil. Originally, the IPO was scheduled for next year. Preparations, however, seem to have slowed so the IPO could be delayed for one year or even more.

• SABIC (Saudi Basic Industries Corporation; الشركة السعودية للصناعات الأساسية، سابك), Riad, Saudi Arabia
• Saudi Aramco, Dhahran, Saudi Arabia
• Saudi Aramco in talks to buy stake in world’s no. 4 chemical firm,
  Hadeel Al Sayegh, Rania El Gamal,
  Reuters July 19, 2018.