[ad_1]
The potential agreement on the acquisition of Saudi Aramco is expected to contribute to a strategic stake in SABIC in Aramco, SABIC, the Public Investment Fund and Saudi Arabia in general, if finally finalized . The company is ranked third or fourth largest petrochemical company in the world and has a worldwide reputation as a leading manufacturer of various chemical products, such as large-scale products such as chemicals, raw materials, high performance plastics and fertilizers . SABIC's manufacturing complexes, the company is present in more than 50 countries and has innovation centers in five major geographical areas: United States, Europe, Middle East, Southeast Asia and Northeast Asia.
SABIC has significant strengths in the chemical sector: Saudi Aramco currently supplies UK-based SABIC plants with fuels and upgrades, whether derived from gas or refined products, or through complex petrochemicals nearby. The Saudi Aramco refineries
and the biggest benefits SABIC's acquisition of this potential transaction aims to strengthen the link between SABIC's forces in chemicals and Saudi Aramco in exploration, production, refining, processing and marketing.
SABIC will benefit from the ability to access new markets Benefiting from the presence of Saudi Aramco, as well as the synergy between marketing, research, development, technology and joint services provided by a strategic owner of SABIC, rather than an investor looking for a financial return.
Aramco, Oil and gas, given the global positions occupied by FEM
In the field of chemicals, Saudi Aramco has embarked on global projects, including the Petro Rabigh project and the "largest petrochemical project of the world ".
This transaction is likely to harmonize the work of both companies and accelerate Saudi Aramco's ambitious plans to increase its global refining and petrochemical capacity.
This merger with SABIC will strengthen Saudi Aramco's strategy of converting crude oil into chemicals. . [1 9459003] The expansion of Saudi Aramco in the refining and chemicals sector will help mitigate the impact of oil price fluctuations on the company's oil revenues.
With regard to the Public Investment Fund, it aims to create added value for the national economy by investing in emerging entities that become giant national companies.
The transfer of SABIC's ownership of the Public Investment Fund to Saudi Aramco will further strengthen strategies and governance while improving the Fund's portfolio.
The overall impact in Saudi Arabia is the potential Lead to greater diversification of the economy Saudi Arabia and Saudi Aramco
This agreement will help the growth of new manufacturing industries that help to increase the national production and provide thousands of jobs to Saudi youth. 19659002] Evaluation of Aramco
If this potential transaction is completed, it will have a positive impact on the valuation of Saudi Aramco, as it will improve the integration of various financial resources and human resources that will enable both companies to realize their future growth strategies, Business Areas That Include Marketing, Technology and Research and Development, and Support Services
Harmonization of Petrochemical Strategy
The global chemicals sector currently represents a market of more than $ 4 trillion, and this market is expected to grow strongly in the coming decades. The growth rate of the global chemicals market will reach 3% per year by 2050 and sales growth in developing countries will more than double.
Saudi Aramco is ideally positioned to take advantage of much of this growing value thanks to its raw material derived from crude oil, and we know that the chemical market is a huge global market, the work of An integrated way leads to greater commercial power.
Chemicals are characterized by fuel, chemicals increase faster than the global economy Therefore, investment in chemicals is a way to support the refining and marketing activities of the company, which is also growing and can significantly increase the value of each ton if it focuses on chemicals and refined fuels.
The Public Investment Fund's strategy aims to diversify Masad And the transfer of ownership of SABIC currently held by the Fund to Saudi Aramco will allow the Fund to focus on investing in new and emerging sectors of the Kingdom and to diversify its portfolio both inside and outside the Kingdom.
Aramco is not independent
Over the last decade, Aramco has embarked on an ambitious program that may be the world's first energy and chemical company.
The company's investments in this area are focused on refining, processing and marketing. Value, starting with the supply of oil v Refining and refining, and in petrochemicals and lubricants.
Employees of both companies
In general, the new entity will benefit from the synergies and skills required for the planned future expansions of the joint venture and will create opportunities for employees of both companies to take advantage of the new venture that they have. they will provide.
SABIC Shareholders
It is important to recognize that these arrangements only apply to the majority shares of SABIC held by the Public Investment Fund and that it is 39, a "private" transaction.
Competition Regulations
In the event of agreement on the completion of the transaction, all antitrust approvals will be initiated as part of the procedures to promote competition, and the share of the two companies Petrochemicals in the World is Still Limited
Source link
