Aramco lines up banks to fund Sabic acquisition

Bloomberg

Saudi Aramco, the world’s largest oil company, is lining up banks to raise money to acquire as much as 70 percent of chemical producer Saudi Basic Industries Corp. in a deal that could value the stake at about $70 billion, according to people familiar with the matter.
Some of Wall Street’s biggest lenders are offering Aramco loans for the potential deal between the kingdom’s state-owned oil and petrochemical giants, the people said, asking not to be identified because discussions are private. Aramco is considering buying 50 percent to 70 percent from the Public Investment Fund, the country’s sovereign wealth fund which controls Sabic, the people said.
A deal would give the PIF, as the sovereign fund is known, the financial firepower it needs to carry out ambitious investment plans at home and abroad as Aramco’s own initial public offering stalls, two of the people said. The PIF and Aramco declined to comment.