SABIC is mainly active in the supply of agri-nutrient and petrochemical products in India
India’s competition watchdog, Competition Commission of India (CCI) has given approval to the acquisition of 70 percent stake in Saudi Basic Industries Corporation (SABIC) by Saudi Arabian Oil Company (Saudi Aramco).
In a tweet posted on Friday, CCI said “it approves acquisition of 70 percent shareholding of Saudi Basic Industries Corporation (SABIC) by Saudi Arabian Oil Company (Saudi Aramco)".
The valuation of the deal is pegged at $69.1 billion (around Rs 487 billion).
Through this acquisition, Saudi Aramco will have sole control over SABIC, the combination notice filed with Competition Commission of India (CCI) said.
In India, SABIC is mainly active in the supply of agri-nutrient and petrochemical products while Saudi Aramco is active in the supply of crude oil, liquefied petroleum gas, base oil and petrochemical products, CCI said.
In March 2019, Saudi Aramco had announced the signing of a share purchase agreement to acquire 70 percent majority stake in SABIC from the public investment fund of Saudi Arabia.
Saudi Aramco had also said that time that “the remaining 30 per cent publicly traded shares in SABIC are not part of the transaction, and Saudi Aramco has no plans to acquire these remaining shares.”