New Delhi: The Competition Commission of India (CCI) gave an approval to Saudi Aramco's acquisition of a 70 percent stake in Saudi Basic Industries Corporation (SABIC) on Friday. "The proposed transaction entails acquisition of 70 percent shareholding in SABIC, currently held by the Public Investment Fund of Saudi Arabia by Saudi Aramco. Through this acquisition of shares, Saudi Aramco will acquire sole control over SABIC," an official statement released by the Ministry of Corporate Affairs said.
An approval from India's antitrust body is required as the Saudi Aramco unit has subsidiaries operating in the country. Aramco Overseas Co, a unit of Saudi Aramco, also has an office in India. In March, Saudi Aramco had agreed to buy the stake for $69.1 billion, in one of the biggest deals in the global chemical industry.
Saudi Aramco is primarily engaged in the exploration, production and marketing of crude oil and natural gas. It is also active, to a lesser extent, in the production and marketing of refined products and petrochemicals. In India, Saudi Aramco is mainly active in the supply of crude oil, liquefied petroleum gas, base oil and petrochemical products.
SABIC is primarily active in the production and sale of commodity chemicals (including petrochemicals), intermediates, polymers, fertilizers and to some extent metals. SABIC also supplies agri-nutrient and petrochemical products.