Special report - Amazon:
Last week was a week of surprises. After American Uber announced the acquisition of Emirati Karim, the Kingdom of Saudi Arabia did not delay investors in the region much, and on the next day directly, Aramco announced Saudi Arabia announced its acquisition of 70% of the Saudi Basic Industries Corporation, which had a significant impact on raising investor sentiment, as in the Arab region witnessed in two weeks two of the largest acquisition deals in the Middle East region. We talked about Uber and Karim deal on Namazon pages and in the following lines we deal with the Aramco and SABIC deal in a giant meeting.
Not a moment’s moment
Aramco and SABIC deal was not the result of the moment, and since July 19, Aramco announced that it had started preliminary talks to purchase a stake from SABIC, then on September 10 the investment fund was The Saudi public has chosen Goldman Sachs to advise on selling its stake in SABIC, and Citigroup has won the role of advising the same deal.In October 2018, Aramco announced that it had started reviewing SABIC's investments in preparation for the acquisition, and then in January, Aramco announced that it was considering choosing banks to issue bonds to complete the deal, and in February 2019 Aramco appointed Goldman Sachs to issue international bonds, and on March 27, 2019 Aramco announces the acquisition of 70% of SABIC.
Bulk benefits
It is expected that there will be wholesale benefits behind Aramco's acquisition of SABIC, where it is expected to bring about a comprehensive transformation that will lead to the creation of a giant integrated national energy and petrochemical company leading Global Energy Sector.The deal will further enhance the growth potential of Saudi Aramco and SABIC in the long run.
It represents a common benefit for all parties, and a qualitative transfer of three of the most important economic institutions in the Kingdom.
The acquisition agreement will provide huge capital to enhance the long-term investment strategy of the Public Investment Fund, which will contribute to the diversification of sectors and sources of income in the Kingdom.The deal will present a strategic owner who is able to add significant value to SABIC and its shareholders, while at the same time taking advantage of the strong capabilities that SABIC has to open prospects for growth opportunities that it can Aramco has to provide it as one of the leading players in the energy markets globally.
The two companies will work together to create a stronger platform to enhance competitiveness, and meet increased demand ...