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The greatest benefit of SABIC in this potential business is to strengthen SABIC's strengths in chemicals and Saudi Aramco in exploration, production, refining, processing and marketing.
SABIC will benefit from the opportunity to penetrate 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 that an investor looking for a financial return.
Aramco is a world-class oil and gas company, with a global position in terms of reserves, production and leadership in terms of costs and benefits.
In the field of chemistry, Saudi Aramco has initiated global projects, among which, finally, the Petro Rabigh project and the "largest petrochemical project in the world".
This potential transaction will contribute to the synergy between the two companies and accelerate Saudi Aramco's ambitious plans to increase its global refining and petrochemical capacity.
This link with SABIC will strengthen Saudi Aramco's strategy of converting crude oil into chemicals and improving its technology in this area.
The expansion of Saudi Aramco in refining and chemicals will mitigate the impact of fluctuations in the price of oil on the company's oil revenues. It can develop the non-transportation sector, the plastics sector and advanced products.
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 institutions, and SABIC does not Was only in its infancy.
The transfer of SABIC's ownership of the Public Investment Fund to Saudi Aramco will strengthen the Fund's strategies and governance, as well as the investment portfolio.
As for the overall impact in Saudi Arabia, the potential step will further diversify the Saudi economy and will have the economic benefit of greater integration between two SABIC operations and Saudi Aramco.
This agreement will help the growth of new transformational industries that help to increase domestic production and provide thousands of jobs to young Saudi Arabians
ARAMCO's Evaluation
] If this potential transaction is completed, Saudi Aramco, which will enhance the integration of various financial and human resources that will enable both companies to pursue future growth strategies, benefiting from commercial synergies including marketing, technology, research and development, and support services.
represents the ironing sector Mawatiyat Al-Alamiya currently has a market size of more than 4 trillion dollars. This market is expected to grow significantly in the coming decades. 39. Organization for Economic Co-operation and Development (OECD) forecasts that the growth rate of the global chemical market will reach 3% per year The growth rate of sales in developing countries is more than double that of developed countries.
Saudi Aramco is ideally positioned to take advantage of much of this growing value through its raw material derived from crude oil. As the chemistry market is known to be a huge global market, Big market.
Chemicals are fuel efficient, chemicals are growing faster than the global economy or the fuel sector, and investment in chemicals is a way to support business Refining and marketing of the company, which are also growing.
The Purpose of the Transaction
is the Public Investment Fund's strategy, which seeks to diversify revenue streams and maximize the interest on its investment portfolio and the transfer of the property of SABIC acquired by him Fund currently, to "Saudi Aramco" Allows the Fund to focus on investing in new and emerging sectors of the Kingdom and to diversify its portfolio internally and outside the Kingdom.
Aramco is not independent
Over the last decade, Aramco has embarked on an ambitious program. The world's first energy and chemicals company.
The company's investments in this area have focused on the establishment of an integrated refining, processing and marketing sector covering all stages of the value chain: oil supply, marketing and refining, petrochemicals and lubricants.
Employees of both companies
Overall, 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 new business opportunities. that this potential transaction will offer. [196592] 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. Limited
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