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SABIC says to finalize Aramco deal in 12 months

2019-03-31 10:31:03 GMT (Economies.com)

Saudi Basic Industries Corporation's (SABIC) investment plans will not be affected by oil giant Aramco's purchase of a 70% stake in the company, said SABIC’s Chief Executive Officer  Yousef Al Bonyan. He expected the deal to take six to 12 months to complete, saying that there won’t be any layoffs or change in management or impact on SABIC’s balance sheet.

 

He also added that SABIC would look to integrate assets with Aramco to boost growth.

 

Saudi Aramco, the world's largest oil producer, agreed last Wednesday to buy the stake in SABIC from Saudi Arabia's Public Investment Fund (PIF) in a deal worth $69.1 billion.

 

Benyan said Aramco would rely heavily on SABIC to become its chemical arm, which would boost growth and help SABIC advance from its current position as the world's third largest petrochemicals company.

 

 

"Since Aramco became active in the chemical industry, people were saying why do both Aramco and SABIC compete in the same space, and I think at this point we are really having an opportunity to generate value for both shareholders," he said.

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