Saudi Aramco expects to close SABIC acquisition deal by 2020

Oil giant Saudi Aramco plans to close the acquisition of a 70 percent stake in Saudi Basic Industries Corp (SABIC) by 2020, it said in its bond prospectus on Monday.

The closing of the acquisition is subject to customary closing conditions, it further added.

The completion of the acquisition is expected to result in Saudi Aramco consolidating SABIC into its financial statements from 2020 and therefore will have an impact on the company’s financial condition and results of operations as at and for the year ending December 31, 2020, compared to prior periods.

Saudi Aramco announced on March 27, 2019, that it had entered into a purchase agreement with the Public Investment Fund (PIF) to acquire 70 percent equity interest in SABIC for total consideration of $69.1 billion.