SABIC seeks authority approval for Ar-Razi stake acquisition

Saudi Basic Industries Corp (SABIC) has filed a request to the General Authority for Competition (GAC) to approve its planned acquisition of an additional 25 percent stake in Saudi Methanol Company (Ar-Razi).

The public and other stakeholders are required to submit thoughts on the planned merger within 15 days, GAC said in a statement on Wednesday.

In December 2018, the giant petrochemical producer signed an agreement with Japan Saudi Arabia Methanol Company (JSMC), renewing its partnership in Ar-Razi for another 20 years, Argaam reported. 

Under the deal, SABIC will raise its stake in Ar-Razi to 75 percent by purchasing half of JSMC’s share, reducing JSMC’s stake in Ar-Razi to 25 percent.

Ar-Razi was established in 1979, as a 50/50 joint venture between SABIC and JSMC with the aim of developing, establishing, owning and operating a methanol complex.