Saudi Aramco, the state oil giant, has confirmed that it is engaged in discussions with the Saudi Public Investment Fund (PIF) to acquire a strategic interest in the Saudi Basic Industries Corporation (Sabic), a petrochemicals major.
In a statement, Saudi Aramco said it has noticed media speculation regarding its possible interest in acquiring an ownership position in Sabic.
"Consistent with the company’s strategy of rebalancing its portfolio by moving further into downstream and the petrochemical sector, in particular, the company has been evaluating a number of acquisition opportunities, both local and global.
"Saudi Aramco confirms that it is engaged in very early-stage discussions with the Public Investment Fund (PIF) regarding acquiring a strategic interest in Sabic by way of a private transaction," the statement said.
"These discussions are preliminary and there is no certainty that any such transaction will take place. Saudi Aramco has no plans to acquire any publicly held shares of Sabic," the statement said.
"If further announcements are appropriate, they will be made in compliance with applicable regulations," it added.
The Aramco move could boost the state oil giant's market valuation ahead of a planned initial public offering, reports said. - TradeArabia News Service