Saudi Aramco says acquisition of SABIC stake on track to close in second quarter

FILE PHOTO: Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov

DUBAI (Reuters) - Saudi Aramco 2222.SE said on Tuesday its planned acquisition of a 70% equity stake in petrochemical maker SABIC 2010.SE from the Public Investment Fund (PIF), the kingdom's wealth fund, is on track to close in the second quarter.

The statement by the state oil giant was made in response to a Reuters story published on Sunday saying that Aramco is looking to restructure its deal for a controlling stake in SABIC after the target’s value dropped more than 40% following an oil price slump in the coronavirus pandemic, according to two sources.

“All necessary regulatory clearances have been obtained. An announcement will be made in due course,” Aramco said in a statement sent to Reuters.

Reporting by Rania El Gamal; Editing by Muralikumar Anantharaman