Reported 2 months ago
Saudi Aramco has decided to purchase a 22.5% stake in the Petro Rabigh petrochemical joint venture from Japan's Sumitomo Chemical for $702 million. This strategic move comes amid mounting losses for Petro Rabigh, which amounted to $2.36 billion as of June. Both companies will be investing equally to inject funds into the venture while alleviating some of its debt obligations. The deal enhances Aramco's ownership in the joint venture to 60%, while Sumitomo's stake is reduced to 15%. This acquisition aligns with Aramco's plans for downstream growth, as it secures a stronger presence in the petrochemical market.
Source: YAHOO