Petrotahlil - The European Commission – the EU’s executive body – has approved the takeover of petrochemicals major SABIC by Saudi Aramco.
Saudi energy major Aramco intends to acquire the 70% of SABIC currently owned by Saudi Arabia’s Public Investment Fund (PIF).
Industry analysts value the transaction at around $70bn.
SABIC is a key global petrochemicals player with several production facilities in Europe.
“The [European] Commission concluded that the proposed acquisition would raise no horizontal competition concerns given the companies' moderate combined market shares in relation to the various petrochemical products they supply,” said the EU executive.
“And the fact that a sufficient number of credible suppliers will remain active in the relevant markets.”
On Sunday, Aramco said its proposed takeover of SABIC had now received clearance from all jurisdictions where it was being reviewed by the antitrust authorities.
Saudi Aramco started trading on the Saudi stock exchange Tadawul in December. Its partial initial public offering (IPO) represented 1.5% of the company and raised $25.6bn - giving the major a total valuation of $1,700bn - and making it the largest corporation in the world.
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Source : ICIS