Saudi Aramco has agreed to pay $69.1 billion for a majority stake in petrochemicals group Saudi Basic Industries Corp. (SABIC) in a deal critical to financing Prince Mohammed bin Salman’s grandiose development plans.
The transaction—in which the sovereign Public Investment Fund (PIF) is selling its 70% stake in SABIC—provides a much-needed cash boost to Prince Mohammed’s plan to diversify Saudi Arabia’s oil-dependent economy.
The PIF, chaired by Prince Mohammed, is seeking to transform the local economy while investing tens of billions of dollars in eye-catching investments such as Uber and Tesla.
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