Saudi Arabian Oil Company signed a share purchase agreement to acquire 70% stake in Saudi Basic Industries Corporation (SASE:2010) from Public Investment Fund for approximately SAR 260 billion on March 27, 2019. Pursuant to the terms of the agreement, Saudi Arabian Oil Company will pay SAR 123.39 per share for the stake in Saudi Basic Industries Corporation. According to a presentation given by Aramco to bond investors, Saudi Arabian Oil Company will pay consideration in separate tranches. Saudi Arabian Oil Company will pay 50% of the acquisition price at the closing of deal, while the remainder will be paid over a two-year period from internal cash generation and, potentially, other sources. The remaining 30% publicly traded shares in Saudi Basic Industries Corporation are not part of the transaction and Saudi Arabian Oil Company has no plans to acquire these remaining shares. On October 6, 2019, Saudi Arabian Oil Company and the PIF agreed to amend the payment terms to provide that, on the closing date, 36% of the purchase price (to be adjusted for certain expenses) will be paid in the form of cash and 64% of the purchase price will be paid in the form of a seller loan. In addition, SAR 9,375 ($2,500) in loan charges will be paid by Saudi Arabian Oil Company, including a SAR 1,875 ($500) loan charge paid in cash on the closing date. The seller loan will be secured by four separate promissory notes issued by Saudi Arabian Oil Company in favor of the PIF and the balance of the loan charges will be secured by five additional promissory notes. These amounts will be payable over a period from September 30, 2020 to September 30, 2025 and are currently intended to be paid in a phased manner through cash from operations, external debt financing or a combination thereof. The transaction is to be funded with the help of issuance of dollar bonds, a six tranche debt. Saudi Aramco started the sale of its bonds on April 9, 2019, and it expects to raise $10 billion but the final proceeds will depend on the prices being set, which will be set on April 9, 2019. As of April 23, 2020, Saudi Aramco has said that it has selected banks to source loans. The firm has chosen HSBC Holdings and Sumitomo Mitsui Financial Group Inc (SMBC) to help it raise a loan. The two banks are to coordinate talks with other banks for a loan of about $10 billion (SAR 37.62 billion).

The transaction is subject to certain closing conditions, including regulatory approvals. As of July 30, 2019, COMESA Competition Commission approved the transaction. As of September 27, 2019, Competition Commission of India approved the transaction. As of January 27, 2020, it is announced that EU antitrust regulators will decide by February 27, 2020 whether to clear the acquisition. As on February 27, 2020, European Commission has approved.

J.P. Morgan acted as financial advisor to Saudi Arabian Oil Company. The deal will have no impact on Saudi Arabian Oil Company's rating. Citi acted as financial advisor to SABIC. HSBC acted as financial advisor to Public Investment Fund. Bank of America Merrill Lynch acted as financial advisor to Public Investment Fund. Mansoor Alhagbani, Omar Rashid, Rizwan Butt, and Mashael Al-Shebaiky of AS&H, and Edmund Boyo, Jim Back, Marc Besen, Guy Norman, Nelson Jung, Michael Rueter, Deepaloke Chatterjee, Anne Filzmoser, Dimitri Slobodenjuk, Caroline Scholke, Johannes Lüer, Arne Gayk, Stavroula Vryna, Carmen Puscas, Aidan Forde, Yasser Al-Hussain, Gareth Camp, Nelson Jung, and Reema Al-Hamoud of Clifford Chance Riyadh and London acted as legal advisors for Public Investment Fund. Gregory Pryor, Frank Lupinacci and Sami Al-Louzi, Megren Al-Shaalan, Khalid Al-Gublan, Joza Al-Rasheed, Reem Albakr, Waad Alkurini and Husam Azhar, Doug Peel and Ivan Paskal of Law Firm of AlSalloum and AlToaimi in association with White & Case LLP, Wendell Maddrey, Clark Wohlferd, Andrew Kreisberg, Ian Cuillerier, Gary Kashar, Edward So, Seth Kerschner, Jean Shimotake, Rebecca Farrington, Eric Grannon, Farhad Jalinous, Hansel Pham, Richard Burke, Scott Lincicome, Stacia Sowerby, Kristina Zissis, F. Paul Pittman, Henrik Patel, Fern Han, Steven M. Lutt, David Hille, Kim Havlin and Robert Milne of White & Case LLP, Stuart Matty, Catherine Andrews, Nicholas Greenacre and Tom Bartlett of White & Case LLP, Jacquelyn MacLennan, Axel Schulz and Strati Sakellariou-Witt of White & Case LLP Avocats-Advocaten, Sara Nordin of White & Case LLP and White & Case, L.L.P. (Germany) acted as legal advisors for Saudi Arabian Oil Company. Morgan Stanley Saudi Arabia acted as financial advisor to Saudi Arabian Oil Company.