Energy giant Aramco will acquire an additional 22.5% stake in Rabigh Refining and Petrochemical Co. (Petro Rabigh) from Tokyo-based Sumitomo Chemical for $702 million. This purchase, at SR7 ($1.86) per share, will increase Aramco’s ownership to about 60%, making it the majority shareholder, while Sumitomo’s stake will reduce to 15%.
Previously, both companies each owned 37.5% of Petro Rabigh, which was listed on the Saudi Exchange in 2008. This acquisition aligns with Aramco’s strategy to expand its downstream operations and Sumitomo’s shift towards specialty chemicals.
Aramco stated that this move would strengthen Petro Rabigh’s balance sheet and enhance profitability. The transaction, subject to regulatory approvals, involves Sumitomo injecting sale proceeds back into Petro Rabigh. Aramco will match this with a $702 million investment, totaling $1.4 billion to support Petro Rabigh’s future strategy.