CCI approves the acquisition of 70% shareholding in SABIC by Saudi Aramco
By : Legal Era
Update: 2019-09-28 07:10 GMT
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The Competition Commission of India (CCI) has approved the acquisition of 70% shareholding in Saudi Basic Industries Corporation (SABIC) by Saudi Arabian Oil Company (Saudi Aramco), under Section 31(1) of the Competition Act, 2002.An approval from the antitrust body is required as SABIC has subsidiaries operating in India, while Aramco Overseas Co., a unit of Saudi Aramco, also has an office...
The Competition Commission of India (CCI) has approved the acquisition of 70% shareholding in Saudi Basic Industries Corporation (SABIC) by Saudi Arabian Oil Company (Saudi Aramco), under Section 31(1) of the Competition Act, 2002.
An approval from the antitrust body is required as SABIC has subsidiaries operating in India, while Aramco Overseas Co., a unit of Saudi Aramco, also has an office in India.
In a press release, the CCI has notified that the proposed transaction entails acquisition of 70% 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.
Saudi Aramco is primarily engaged in the exploration, production and marketing of crude oil and natural gas. 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. In India, SABIC is mainly active in the supply of agri-nutrient and petrochemical products.