RIYADH, Saudi Arabia (AP) — Saudi Aramco has purchased a 70 percent share in petrochemical firm SABIC for $69.1 billion in a deal that pumps capital into the kingdom's sovereign wealth fund.
Aramco says it acquired the majority stake in SABIC from the Public Investment Fund (PIF) in a private transaction, leaving the remaining 30 percent of SABIC's publicly traded shares untouched. SABIC's market capitalization is estimated at around $100 billion.
The sale comes amid delays of an initial public offering of Aramco shares on an international exchange, which Crown Prince Mohammed bin Salman had touted as a way to raise capital for the PIF.
Wednesday's deal provides another way to channel funds to the PIF for the crown prince's large-scale projects in Saudi Arabia aimed at diversifying the economy away from reliance on oil.