Aramco in €640m deal to become majority shareholder in Petro Rabigh

Riyadh – Aramco has signed a definitive agreement to acquire an additional stake of 22.5% in Rabigh Refining and Petrochemical Co. (Petro Rabigh) from Sumitomo Chemical for $702 million (€642 million).

Aramco and Tokyo-headquartered Sumitomo Chemical currently each own 37.5% of shares in the integrated refining and petrochemical complex located on the Saudi west coast.

Upon completion of the transaction, Aramco will become Petro Rabigh’s largest shareholder with an equity stake of 60%, while Sumitomo Chemical will retain an equity stake of 15%.

The transaction, which is subject to customary closing conditions, is part of a package of financial measures intended to reinforce Petro Rabigh’s financial position, said Aramco 7 Aug.

Under the terms of the deal, all proceeds received by Sumitomo Chemical will be injected into Petro Rabigh, while Aramco will match the $702 million sum through an agreed mechanism.

Among other units, Petro Rabigh currently operates a 75ktpa EPDM manufacturing plant in Saudi Arabia.

The company also announced last year that it intended to build a SAR100-million (€25 million) polymer compounding site with a capacity to produce 50 kilotonnes per annum of polymer compounds, rubber and industrial waxes.