Aramco Increases Petro Rabigh Stake to 60% in $702 Million Deal

Saudi Aramco is increasing its ownership in the petrochemical joint venture Petro Rabigh by purchasing a 22.5% stake from Sumitomo Chemical for $702 million. This deal aims to address Petro Rabigh`s significant accumulated losses, primarily caused by unfavorable market conditions and increased interest rates. As part of the agreement, both companies will inject $702 million into Petro Rabigh and waive $1.5 billion in loans. This transaction aligns with Aramco`s downstream expansion strategy and Sumitomo Chemical`s shift towards speciality chemicals. Sumitomo Chemical expects to record a pre-tax loss in the July-September quarter due to this deal but maintains its annual profit forecast.