Companies

CCI approves Saudi Aramco’s proposed acquisition of SABIC

Our Bureau New Delhi | Updated on September 27, 2019 Published on September 27, 2019

Saudi Arabia removed Energy Minister Khalid Al-Falih from his position as Chairman of Saudi Aramco. File Photo   -  Reuters

The Competition Commission of India (CCI) has given its approval for Saudi Aramco’s proposed acquisition of SABIC.

The proposed transaction entails acquisition of 70 per cent shareholding in SABIC, currently held by the Public Investment Fund of Saudi Arabia by Saudi Aramco. Through this acquisition of shares, Saudi Aramco will acquire sole control over SABIC.

The CCI approval for this transaction has come under Section 31(1) of the Competition Act 2002, an official release said.

Saudi Aramco is primarily engaged in the exploration, production and marketing of crude oil and natural gas. It is also active, to a lesser extent, in the production and marketing of refined products and petrochemicals.

In India, Saudi Aramco is mainly active in the supply of crude oil, liquefied petroleum gas, base oil and petrochemical products.

SABIC is primarily active in the production and sale of commodity chemicals (including petrochemicals), intermediates, polymers, fertilizers and to some extent metals. In India, SABIC is mainly active in the supply of agri-nutrient and petrochemical products.

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Published on September 27, 2019
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