Dhahran, Saudi Aramco is in very early-stage discussions with Kingdom of Saudi Arabia's Public Investment Fund (PIF) to acquire a stake in Saudi petrochemical maker SABIC (Saudi Basic Industries Corporation), the company said on Thursday.
The statement follows media reports that Saudi Aramco last month already invited banks to pitch for an advisory role in the acquisition, which could help increase the company's market valuation ahead of an IPO.
Consistent with the company's strategy of rebalancing its portfolio by moving further into downstream and the petrochemical sector in particular, the company has been evaluating a number of acquisition opportunities, both local and global, the statement noted.
The negotiations with PIF regarding SABIC, the statement added, are preliminary.
There is no certainty that any such transaction will take place, it noted. Saudi Aramco has no plans to acquire any publicly held shares of SABIC.
Saudi Aramco indicated that it will announce latest developments in this regard in accordance with applicable regulations and through its official channels.
Source: Saudi Press Agency