ARAMCO ACQUIRES MAJORITY STAKE IN PETRO RABIGH WITH AN INVESTMENT OF US$702 MILLION.

Source: Oil and Gas

The transaction, valued at $702 million, makes Aramco the largest shareholder in Petro Rabigh, with a total stake of about 50%. Tokyo-based Sumitomo will retain about 15% of the complex's shares.

Petro Rabigh, which has been listed since 2008, is a key component of Aramco's expansion strategy in the petrochemical sector. The share price of Petro Rabigh is $1.86 per share. This transaction is part of a package of financial measures aimed at strengthening the complex's financial position. The agreement stipulates that all Sumitomo proceeds from the sale will be injected directly into Petro Rabigh.

In addition to the share purchase, Aramco has committed to provide additional funding to Petro Rabigh, matching Sumitomo's $702 million. This will bring the total capital injection to $1.4 billion. This investment aims to strengthen the complex's financial capacity and facilitate its conversion and expansion strategy.