Commission Decision No. 21-M-015/2019:
In the Matter of the Proposed Acquisition by Saudi Arabian Oil Company
of Shares in Saudi Basic Industries Corporation

ABSTRACT:

The transaction involves the proposed acquisition by Saudi Arabian Oil Company (Saudi Aramco) intends to acquire sole control of Saudi Basic Industries Corporation (SABIC) by way of acquisition of 70% of SABIC’s shares, which are currently owned by the Public Investment Fund of Saudi Arabia (PIF).

Saudi Aramco is a joint stock company incorporated in, and wholly owned by, the Kingdom of Saudi Arabia. The firm is primarily engaged in the
exploration, production, and marketing of crude oil and in the production and marketing of refined products and petrochemicals.

The Public Investment Fund of Saudi Arabia (PIF) is a wealth fund established in 1971 by a Royal Decree of the Kingdom of Saudi Arabia and is fully-owned by the Kingdom of Saudi Arabia. PIF invests locally and globally on behalf of the Kingdom of Saudi Arabia in various sectors and
asset classes, including telecoms, aerospace, energy, green technologies, and security.

On the other hand, SABIC is a listed joint stock company also incorporated in Saudi Arabia and listed on the Saudi Stock Exchange. SABIC is primarily active in the production and sale of commodity chemicals, intermediates, polymers (also referred to as plastics), fertilizers, and to some extent, metals.