SABIC Finalizes Agreement with Ma’aden to Sell Alba Shares

SABIC has announced a significant move in its strategic realignment with the signing of an agreement to sell its 20.62% stake in Aluminum Bahrain (Alba) to Saudi Arabian Mining Company (Ma'aden). The transaction, which is valued between BHD 363 million and BHD 398 million (equivalent to SAR 3,624 million to SAR 3,974 million), is set to proceed pending regulatory approvals from authorities in both Saudi Arabia and Bahrain. Additionally, the completion of the sale is contingent upon meeting certain customary conditions outlined in the Share Purchase Agreement.

Abdulrahman Al-Fageeh, SABIC's CEO, highlighted the importance of this transaction, stating, “Our longstanding partnership with Alba has been highly beneficial and has significantly contributed to SABIC’s development. Once this deal is finalized, it will enable us to enhance our strategic focus, positioning SABIC more effectively as a global leader in the chemicals sector while also supporting Saudi Vision 2030.” Al-Fageeh highlighted that this decision is in line with SABIC's overarching strategy to simplify its operations and enhance the efficiency of its investment portfolio.

The sale of SABIC’s stake in Alba represents a strategic shift for the company. By divesting from its holdings in Alba, SABIC aims to concentrate more intently on its core business areas, allowing for a more focused approach to growth within the chemicals industry. This divestment will not only streamline SABIC’s operations but also provide an opportunity to reallocate capital to higher-margin ventures, enhancing overall financial performance and returns.

The transaction is expected to offer SABIC enhanced financial flexibility and the ability to direct resources toward its strategic priorities. The proceeds from the sale will contribute to SABIC’s efforts to improve its capital efficiency and reinvest in high-growth opportunities that align with its long-term objectives. This move is also anticipated to strengthen SABIC's position in the global chemicals market, allowing the company to better support its ambitious goals and contribute to the realization of Saudi Vision 2030.

In summary, the sale of SABIC’s shareholding in Alba is a pivotal step in the company’s strategy to refine its business focus, optimize its asset portfolio, and drive growth in key areas. The completion of this transaction will mark a significant milestone in SABIC’s ongoing efforts to enhance its market position and operational efficiency.

Since its establishment in 1976 through a royal decree, SABIC has consistently demonstrated an exceptional capability to achieve what others believed was impossible. As one of the world's leading petrochemical producers, SABIC is headquartered in Riyadh, Saudi Arabia. The company is publicly traded, with 70% of its shares held by Saudi Aramco and the remaining 30% listed on the Saudi stock exchange. SABIC's remarkable growth story is well-regarded, with the company now serving clients across more than 140 countries and employing nearly 31,000 skilled professionals globally. We are dedicated to fostering a workplace where every individual can excel and succeed.