Aramco, a global leader in energy and chemicals, has finalized a deal to acquire an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Japan’s Sumitomo Chemical for $702 million. Located on Saudi Arabia’s west coast, Petro Rabigh is a major refining and petrochemical complex.
Currently, both Aramco and Sumitomo Chemical hold 37.5% ownership in Petro Rabigh, which was listed on the Saudi Exchange in 2008. With the new agreement, Aramco will raise its stake to around 60%, becoming the largest shareholder, while Sumitomo Chemical will retain a 15% stake. The acquisition is priced at SAR 7 per share and is pending customary closing conditions, including regulatory and third-party approvals. The deal is part of a broader financial strategy to strengthen Petro Rabigh’s position.
Under the agreement, the $702 million Sumitomo Chemical will receive from the sale will be reinvested in Petro Rabigh. Aramco will also inject an additional $702 million, bringing the total capital infusion to $1.4 billion. This financial support aims to bolster Petro Rabigh’s finances and future strategic plans.
Additionally, both Aramco and Sumitomo Chemical have agreed to a phased waiver of $750 million in shareholder loans each, reducing Petro Rabigh’s liabilities by $1.5 billion. These initiatives are expected to enhance Petro Rabigh’s balance sheet and liquidity, while supporting refinery upgrades to improve profitability.
This acquisition aligns with Aramco’s strategy to expand its downstream operations and strengthen its crude oil placement, while Sumitomo Chemical shifts its focus from commodity chemicals to specialty chemicals. Aramco Senior VP Hussain A. Al Qahtani highlighted that the increased stake will help integrate Petro Rabigh further into Aramco’s downstream operations and support its turnaround strategy.
Sumitomo Chemical’s Senior Managing Executive Officer, Seiji Takeuchi, noted that the transaction is a crucial step in developing a sustainable future strategy for Petro Rabigh, benefiting both companies’ long-term goals.
