Aramco Could Deploy 'Barbarians at the Gate' Playbook for Sabic - Bloomberg:
Saudi Arabia isn’t the first place you’d look for exotically structured M&A, but as oil giant Aramco pursues the kingdom’s biggest-ever deal it could use an option first pioneered by buccaneering Wall Streeters three decades ago: a giant leveraged buyout.
Saudi Aramco is planning to buy a strategic stake worth as much as $70 billion in petrochemical firm Sabic. The oil producer could finance the acquisition the traditional way: tapping bond investors and taking bank loans, according to people familiar with the matter. Trouble is, a big global bond issue would require Aramco to reveal detailed financial results for the first time.
Within the kingdom, there’s a big debate about whether to open Aramco to outside scrutiny. Crown Prince Mohammed bin Salman has spoken in the past about the benefits of openness and pushed for an initial public offering for the company -- a plan that’s been put on hold while the Sabic deal is done. Others in government and Aramco favor keeping things secret.
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