Saudi Arabia’s SABIC targets acquisition opportunities valued between USD 3 billion to USD 6 billion
Category: #world  By Satarupa De  Date: 2017-05-05
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Saudi Arabia’s SABIC targets acquisition opportunities valued between USD 3 billion to USD 6 billion

SABIC (Saudi Basic Industries Corporation), the Saudi Arabian manufacturing & petrochemicals company holding a substantial share in the specialty chemicals, fertilizers, and industrial polymers markets, has lately been assessing opportunities for acquiring other firms. The association intends to take over other companies operating in chemicals, fertilizers, and petrochemicals markets, with an estimated deal value between USD 3 billion to USD 6 billion.

The announcement came forth immediately after SABIC’s profit jumped by almost 80% in the first quarter of 2017. The state owned corporation made a net profit of more than 5 billion Saudi riyals in Q1 2017. This is a marked improvement from the figures of 2016, when SABIC made a net profit of more than 2.9 billion Saudi riyals.

Currently holding the fourth position in the list of best petrochemical makers of the world, SABIC ultimately aims to make it to the top, bit by bit, by initially claiming the third position behind The Dow Chemical Company, world leader in global oil field specialty chemicals market, and BASF, a leading player in global bio-based platform chemicals market as well as oilfield chemicals industry.

In the petrochemicals market, SABIC plans to look up acquisitions in the regions of China and North America. With an aim to penetrate further into the agricultural nutrients and fertilizer markets, SABIC has also been reportedly exploring opportunities in the African continent. The firm’s executives have stated that each one of these acquisitions will be valued strictly between USD 3 billion to USD 6 billion. This may possibly be a consequence of the company wanting to focus on the emerging economies of Africa. Moreover, the firm is also optimistic about the high economic growth in China and the United States, and is targeting acquisitions in those regions as well.

It has also been reported that SABIC is in talks with Saudi Aramco, the Saudi Arabian petroleum and natural gas corporation, to finalize technology-based solutions regarding their joint vebture, the OTC (oil to chemicals) project.

According to reliable reports, the global oil market has suffered a setback in recent times. Despite the global meltdown, SABIC seems to be maintaining a rather positive demeanor. The company reportedly has a predator eye on the global oil market situation, however, some top officials were quoted saying that cost prediction has become a tad bit difficult considering the ambiguity of the oil market. They also claim that they plan to consider refinancing instead of raising heavy debts to achieve their goal of climbing a position further in the list of top global petrochemical makers.



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Satarupa De

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Satarupa De

Satarupa develops content for Market Size Forecasters, Algosonline, and various other portals. An electrical engineer by qualification, she worked for two years in the core domain before switching her professional genre. Following her childhood passion, she opted for ...

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