Aramco-Sabic deal to spur consolidation in regional petchems - The National:
The proposed stake sale of Sabic, the region’s biggest chemicals manufacturer, to the world's top oil producing company Saudi Aramco is expected to set into motion more consolidation in the regional industry, analysts said.
"If Aramco acquires a substantial stake in Sabic, a new consolidation will emerge in the Saudi petrochemicals sector," said Ehsan Khoman, head of Mena research and strategy at Japan's MUFG Bank. "In-turn, there will be a requirement to revisit the existing Aramco and Sabic joint-ventures currently prevailing, as these will be impacted by reassessments or ongoing amendments.”
Aramco in July said it was in talks to acquire a stake in Sabic as the state-owned oil company looks to become a more integrated energy player. Aramco, the primary feedstock supplier for Sabic, has already partnered with it to develop a $20 billion venture to process oil into chemicals on the kingdom's Red Sea coast.
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