Sabic to Buy Remaining Stake in JV with Shell for $820 Million
January 22 2017 - 7:05AM
Dow Jones News
By Ahmed Al Omran
RIYADH--Saudi Basic Industries Corp. (2010.SA) said Sunday that
it had signed an agreement to acquire for $820 million the 50%
stake that it doesn't already own in its local joint venture with
an affiliate of Royal Dutch Shell.
The company, better known as Sabic, said the transaction with
Shell Arabia is subject to regulatory approval and expected to be
completed before the end of 2017.
The two companies also signed a memorandum of understanding to
study future investment opportunities in Saudi Arabia and abroad,
Sabic said.
The joint venture between Sabic--one of the world's largest
petrochemical companies--and Shell is called Sadaf. It operates a
complex of six petrochemical plants in the Saudi coastal city of
Jubail. The plants produce more than 4 million metric tons of
chemicals per year.
"With this transaction Sabic is looking to capitalize on synergy
opportunities of Sadaf with other affiliates, and improve its
operation and profitability," Yousef al-Benyan, Sabic's chief
executive, said in a statement.
Shell is involved in other downstream activities in the kingdom,
including a crude-oil refinery with Saudi Aramco. The company also
has other ventures with Saudi partners to produce lubricating oil
and aviation refueling operations.
Write to Ahmed Al Omran at ahmed.alomran@wsj.com
(END) Dow Jones Newswires
January 22, 2017 06:50 ET (11:50 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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