Prime Highlights:

• Saudi Aramco raises its stake in Petro Rabigh to 60%, becoming the largest shareholder and showing confidence in the company’s long-term growth.
• A $1.4 billion capital injection and $1.5 billion in waived loans strengthen Petro Rabigh’s finances and support its ongoing transformation.

Key Facts:

• The deal values Petro Rabigh shares at SR7 ($1.87) each, with Sumitomo retaining a 15% stake.
• Following the announcement, Aramco’s shares rose 0.38% to SR92.95, and Petro Rabigh’s shares increased 1.82% to SR7.84.

Key Background:

Saudi Aramco has completed the acquisition of an additional 22.5 percent stake in Rabigh Refining and Petrochemical Co. (Petro Rabigh) from Japan’s Sumitomo Chemical Corp. for $702 million. The transaction, valued at SR7 ($1.87) per share, increases Aramco’s ownership to 60 percent, making it the company’s largest shareholder. Sumitomo retains a 15 percent stake, according to an official press release.

First announced in August 2024, the deal includes a $1.4 billion capital injection jointly provided by Aramco and Sumitomo. The funds will be used to partially prepay Petro Rabigh’s debt and strengthen its balance sheet. The funding uses Class B shares, allowing new capital without changing governance or other shareholders’ voting rights.

Hussain Al-Qahtani, Aramco’s senior vice president of fuels, emphasized the strategic importance of the investment. Petro Rabigh is a key player in the Kingdom’s downstream sector. This additional investment reflects our strong belief in its long-term prospects and underscores our focus on downstream expansion and value creation,” he said.

Al-Qahtani added that Aramco aims to integrate more closely with Petro Rabigh to unlock new opportunities, enhance operational efficiency, and optimize its product mix. The company said the acquisition will support Petro Rabigh’s ongoing transformation program, targeting operational upgrades, higher yields of high-margin products, and improved plant reliability.

This deal is part of Aramco’s ongoing efforts to grow its downstream and international presence. Earlier in 2025, the company bought a 50 percent stake in Blue Hydrogen Industrial Gases Co. to boost its low-carbon hydrogen production. It also acquired 10 percent of Horse Powertrain Ltd., expanding into hybrid and internal combustion powertrain technologies, and completed the full purchase of Chile’s Esmax Distribucion SpA, its first downstream retail investment in South America.

In two steps that were taken to reduce debt and enhance the finances of Petro Rabigh, Aramco, and Sumitomo canceled 1.5 billion in shareholder loans. Upon the announcement, the shares of Aramco rose to SR92.95, and the shares of Petro Rabigh rose to SR7.84, which is a positive reaction of the market.

The transaction indicates that Aramco is concentrated on diversifying its downstream, building a portfolio, and developing long-term value within the Saudi Aramco energy industry and petrochemical segments.

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