SABIC Aims to Acquire Stake in Brazilian Petrochemical Firm

Saudi Basic Industries Corp. (SABIC), a prominent entity listed on the Saudi stock exchange, is gearing up to make a bid to acquire a stake in Braskem, a leading petrochemical company headquartered in Brazil. It is worth noting that SABIC is predominantly owned by Saudi Aramco, holding a significant 70% stake in its ownership. Contrary to previous speculations, SABIC plans to pursue an independent bid for the stake in Braskem and will not engage in a partnership with the Abu Dhabi National Oil Co. (ADNOC) from the United Arab Emirates (UAE) for this endeavor. Reports indicate that ADNOC has already initiated the due diligence process in connection with this potential transaction.

In November 2023, ADNOC kickstarted a takeover bid with the aim of acquiring the majority of the 38.3% stake held by Novonor, a prominent Brazilian conglomerate. If this proposed transaction materializes, Novonor would retain only a minimal 3% portion of its current stake in Braskem.

However, despite earlier speculations suggesting SABIC's interest in acquiring a stake in Braskem, the company has refuted such claims. SABIC issued a statement addressing the media speculation, clarifying that there are no plans in place to submit a bid for a stake in Braskem. This clarification marks a departure from the previous reports that had been circulating in the media.

Saudi Basic Industries Corp. (SABIC), officially recognized as the Saudi Basic Industries Corporation, holds a distinguished position as a global leader in the chemical industry, with its headquarters situated in Riyadh, Saudi Arabia. Renowned for its extensive manufacturing capabilities on a global scale, SABIC specializes in the production of a diverse range of chemicals, encompassing both commodity and high-performance plastics, agri-nutrients, and metals.

In 2017, Saudi Basic Industries Corp. (SABIC) achieved the fourth position globally among chemical companies, as per the Fortune Global 500 rankings. By the conclusion of 2018, SABIC ascended to become the 281st largest corporation worldwide. In 2014, the company recorded impressive sales revenues totaling $50.4 billion, with profits reaching $6.7 billion and assets amounting to $90.4 billion. Moreover, SABIC earned recognition as the world's second most valuable brand in the chemicals industry by Brand Finance in 2021.

On the other hand, Braskem operates as a prominent Brazilian petrochemical company, headquartered in São Paulo. Established as the largest petrochemical company in Latin America, Braskem has emerged as a significant player in the global petrochemical market, ranking as the 8th largest resin producer worldwide.