Approval for Aramco being supplier to India
Ministry of Corporate Affairs’ Competition Commission of India has approved the acquisition of 70% shareholding in Saudi Basic Industries Corporation (SABIC) by Saudi Arabian Oil Company (Saudi Aramco), which supplies crude oil, petroleum products and petrochemicals to India.
The proposed transaction, under Section 31(1) of the Competition Act, 2002, 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, said the Ministry on 27 Sept 2019.
In India, Saudi Aramco is mainly active in the supply of crude oil, liquefied petroleum gas, base oil and petrochemical products.
Saudi Aramco is primarily engaged in the exploration, production and marketing of crude oil and natural gas. It is also active, to a lesser extent, in the production and marketing of refined products and petrochemicals.
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. fiinews.com