Saudi Aramco has completed the acquisition of a 70% majority stake in Saudi Basic Industries Corporation (Sabic) from the Saudi Public Investment Fund (PIF). The oil giant says this will help it accelerate its downstream strategy.

The SAR 259.125 billion ($69.1 billion) transaction was agreed last year (see Kallanish passim). The remaining 30% of Sabic shares, which are publicly traded, are not part of the deal. Sabic will continue to be a listed company on the Saudi Stock Exchange.

The acquisition “…transforms Aramco into one of the major global petrochemicals players; integrating upstream production with Sabic feedstock; expanding capabilities in procurement, supply chain, manufacturing, marketing and sales,” the firm says.

Sabic vice chairman and chief executive Yousef A. Al-Benyan says: “Sabic expects to benefit from the additional scale, technology, investment potential, and growth opportunities Aramco will bring in integrated energy and chemicals production.”

Sabic owns Saudi Iron & Steel Company (Hadeed), which produces rebar and wire rod, as well as hot and cold rolled coil.

Hadeed’s sales volumes dropped -2% on-year in 2019 to 4.84 million tonnes, as slowing global economic growth depressed steel demand. Production fell -9% to 4.67mt.

Sabic’s Mauritania-based iron ore miner joint venture, Takamul, is expected to ship the first ore cargo to Hadeed by 2024. It will produce up to 10 million tonnes/year of 67-68% Fe and below 2% silica content DR-grade pellet from 35-38% Fe magnetite iron ore.