By Ilya Korzinkin, Mihir Gupta, Hugo Tay, Siddharth Sharma (University College London), Vincent Wess, and Julius Kalvelage (WHU) | 16/03/2020
Company Overview Acquirer (Saudi Aramco)
Saudi Aramco (officially Saudi Arabian Oil Company) is an oil and gas company based in Saudi Arabia. The firm’s main operations are divided into the “upstream segment” and the “downstream segment”. The former includes activities revolving around the exploration and development of crude oil, natural gas and natural gas liquids. The latter is focused on refining and petrochemical manufacturing, as well as on supply, trading and distribution. Saudi Aramco is considered to be the most valuable and profitable company worldwide.
Founded in: 1933
Headquarters: Dhahran, Saudi Arabia
CEO: Amin H. Al-Nasser
No. of employees: 76,000
Market cap: USD 1,59trn
EV: USD 1,58trn
LTM Revenue: USD 329bn
LTM EV/Revenue: 4.1x
LTM EBITDA: USD 193bn
LTM EV/EBITDA: 8.2x
Acquirer Company Overview (Public Investment Fund of Saudi Arabia)
The fund is the sovereign wealth fund of Saudi Arabia and with total estimated assets of $320 billion one of the largest sovereign wealth funds in the world. It was founded for the purpose of investing on behalf of the Government of Saudi Arabia
Founded in: 1971
Headquarters: Riyadh, Saudi Arabia
Chairman: Mohammad bin Salman (crown prince of Saudi Arabia)
AUM: $320 bn
Target Company Overview (SABIC)
Headquartered in Riyadh, Saudi Arabia, SABIC (Saudi Basic Industries Corporation) is active in the areas of manufacturing, marketing and distribution of chemical, agri-nutrient and metal products in over 50 countries.
Founded in: 1976
Headquarters: Riyadh, Saudi Arabia
CEO: Yousef Abdullah Al-Benyan
No. of employees: 35,000
Market cap: USD 55.12bn
EV: USD 56.7bn
LTM Revenue: USD 37.21bn
LTM EV/Revenue: 1.5x
LTM EBITDA: USD 8.4bn
LTM EV/EBITDA: 6.75x
Overview of the deal
Acquirer: Saudi Aramco
Seller: Public Investment Fund of Saudi Arabia