The proposed transaction entails acquisition of 70% shareholding in SABIC, currently held by the Public Investment Fund of Saudi Arabia by Saudi Aramco. Through this acquisition of shares, Saudi Aramco will acquire sole control over SABIC.

Saudi Aramco is primarily engaged in the exploration, production and marketing of crude oil and natural gas. It is also active, to a lesser extent, in the production and marketing of refined products and petrochemicals. In India, Saudi Aramco is mainly active in the supply of crude oil, liquefied petroleum gas, base oil and petrochemical products.

SABIC is primarily active in the production and sale of commodity chemicals (including petrochemicals), intermediates, polymers, fertilizers and to some extent metals. In India, SABIC is mainly active in the supply of agri-nutrient and petrochemical products. 

Detailed order of the Commission will follow.

Merger control clearance: approval granted for acquisition conferring sole control over petrochemical and upstream supply activities in India. Approval under Section 31(1) of the Competition Act, 2002 was granted for the proposed acquisition of a 70% shareholding in SABIC by Saudi Aramco, resulting in sole control of SABIC. Saudi Aramco's relevant activities include exploration, production and marketing of crude oil, natural gas, refined products and petrochemicals and Indian supply of crude, LPG, base oil and petrochemical products. SABIC's relevant activities include production and sale of commodity chemicals, intermediates, polymers, fertilizers and some metals and Indian supply of agri-nutrient and petrochemical products.