Will Saudi Armaco buy controlling stake in SABIC – sources?
DUBAI (Reuters) - Saudi Aramco aims to buy a controlling stake in petrochemical maker SABIC <2010.SE>, possibly taking the entire 70 percent stake owned by Saudi Arabia's sovereign wealth fund, two sources familiar with the matter told Reuters.
Late last week Aramco <IPO-ARMO.SE> confirmed a Reuters report that it was working on a possible purchase of a "strategic stake" in Saudi Basic Industries Corp (SABIC) <2010.SE> from the Public Investment Fund, the kingdom's top sovereign wealth fund.
Aramco's initial thinking is to buy the full stake owned by the Public Investment Fund (PIF), but if that fails to materialise Aramco could end up with a stake in SABIC of more than 50 percent, making it a majority owner, the sources said.
No final decision has been made on the size of the stake as the discussions are still at a very early stage, they added.
Aramco declined to comment. The PIF did not respond to a Reuters request for comment.