Saudi Basic Industries Corp has hired Citigroup Inc to advise on Saudi Aramco’s potential acquisition of a majority stake in the petrochemical giant in a deal that may be valued at $70 billion, according to people with knowledge of the matter.
Aramco plans to acquire the stake from the Public Investment Fund, the kingdom’s sovereign wealth fund, which owns 70 percent of Sabic.
Goldman Sachs Group Inc has also been hired to advise on the deal, the people said on condition of anonymity because the talks are private. The US bank is working with the PIF, one person said.
The deal would give the PIF financial firepower to expand its investments at home and abroad. Executives at the PIF and Sabic didn’t immediately respond to requests for comment. Citigroup and Goldman Sachs declined to comment.
JPMorgan Chase & Co and Morgan Stanley are advising state-owned Aramco on the transaction, according to people familiar with the matter. At current market prices, the PIF’s stake in Sabic is worth about $70 billion.
Saudi Aramco said in July it may buy shares in Sabic in a private transaction. The oil giant is weighing tapping international bond markets for the first time to help finance the acquisition.