Saudi Aramco, the Kingdom of Saudi Arabia’s state-owned oil giant and the world’s most profitable company on an unaudited basis, has been well on route to receive an unconditional EU antitrust approval for its $69 billion purchase of a 70 per cent stake in the heavily oil-dependent kingdom’s petrochemical group, Saudi Basic Industries Corp.
(SABIC), the second-largest public listed company in the Mideast country, sources familiar with the issue had unveiled on Friday, the 20th of February 2020, on condition of anonymity. In point of fact, latest move of the world’s No.
1 profitable company, Saudi Aramco, came against the backdrop of its latest public listing in the Riyadh stock exchange which had also notched an all-time high IPO valuation and valued the Saudi state-backed oil giant at $1 trillion, a figure long-sought by the Saudi crown prince Mohammed bin Salman.
Nonetheless, shortly after its Initial Public Offering, shares of Saudi Aramco had started off to lose momentum and has fallen as much as 4.40 per cent to Saudi Riyal 33.65 per share since its beginning of trading in Riyadh amid a multi-year low crude oil prices, while analysts had also raised questions whether the Saudi state-backed oil industry mogul could be able to pay off its promised dividend of $75 billion by September this year.
However, while being asked over the media report that revealed a likely unconditional EU antitrust approval for Saudi Aramco’s purchase of a 70 per cent stake in the world’s fourth-largest petrochemical group, the European Commission, scheduled to reach a decision on the case by end-February, had declined to comment.