Merger of SABIC and Saudi Aramco will not result in asset disposal

SABIC chief executive Yousef Al-Benyan said the merger of Saudi Basic Industries Corporation (SABIC) with Saudi Aramco would not result in an asset disposal as the chemical producer seeks to expand its production
.

"We've made really good progress
.
It's a collaboration, not necessarily a merger, but there are some assets that we need to see how we're going to integrate them
.
We're looking at the synergies that can be leveraged between the two organizations, and we're building around these Target made some announcements
,” Benyan said on the sidelines of the Dubai Gulf Petrochemicals and Chemicals Leaders Forum on June 16
.

“We are looking at growth factors and we don’t see any assets being disposed of
yet.
We still have opportunities to grow domestically
.
”

Saudi Aramco ended up buying a 70 percent stake in SABIC for $69 billion in 2020
.
Since then, Aramco has been working on integrating SABIC into its downstream businesses
.
The two companies focus on selectively integrating synergies, including in manufacturing, information technology, project management and sales
.

"Hopefully by the third quarter, we'll be in a better position to see what our 2030 goals are," Benyan said.
"
We're reviewing some growth opportunities
.
That will determine how much we're going to invest globally
.
"

In addition to its investments in Saudi Arabia, SABIC also hopes to expand its operations in the U.
S.
, Asia and Africa, Benyan said
.

Petrochemicals make up the bulk of SABIC's business
.
At the same time, the company also produces metals and fertilizers and has plants in the Americas, Europe, Asia and Africa
.

In April, SABIC said it would take over the sales and marketing of about 5.
4 million tonnes/year of chemical and polymer products from Saudi Aramco
.
In April, SABIC said in its first-quarter earnings report that the move would focus SABIC's commercial focus on petrochemicals, while Aramco's trading arm would focus on fuel products
.
As a result, SABIC said there will eventually be 900,000 tonnes/year of additional product available for sale
.