Saudi Arabia: Saudi Aramco completed the acquisition of an additional 22.5 percent stake in Rabigh Refining and Petrochemical Co., known as Petro Rabigh, from Japan’s Sumitomo Chemical Corp. for $702 million.  

The acquisition, valued at SR7 ($1.87) per share, raises Aramco’s total ownership to 60 percent and makes it the largest shareholder, while Sumitomo retains 15 percent, the company said in a press release.

The transaction, first announced in August 2024, includes a $1.4 billion capital injection jointly provided by Aramco and Sumitomo to partly prepay Petro Rabigh’s debt and bolster its balance sheet.

The acquisition marks a significant step in Aramco’s ongoing strategy to expand its integrated refining, chemicals, and marketing operations.

Hussain Al-Qahtani, Aramco senior vice president of fuels, said: “Petro Rabigh is a key player in the Kingdom’s downstream sector and this additional investment by Aramco reflects strong belief in its long-term prospects. It also underscores Aramco’s focus on downstream expansion and value creation.”

He added: “We look forward to exploring closer integration with Petro Rabigh, with the aim of unlocking new opportunities and complementing Petro Rabigh’s broader transformation objectives, which include upgrading its product mix, enhancing asset reliability and optimizing operations.” 

The company said the deal underscores its commitment to value creation, business integration, and portfolio diversification across the downstream sector.

It also enhances Aramco’s capacity to support Petro Rabigh’s transformation program, which targets operational upgrades, improved yields of high-margin products, and greater plant reliability. 

The Petro Rabigh deal follows a series of acquisitions underscoring Aramco’s strategy to expand its downstream and international footprint. In 2025, the company acquired a 50 percent stake in Blue Hydrogen Industrial Gases Co. to strengthen its position in low-carbon hydrogen production. 

Late last year, Aramco purchased a 10 percent stake in Horse Powertrain Ltd., advancing its presence in hybrid and internal combustion powertrain technologies, and completed the full acquisition of Chile’s Esmax Distribucion SpA — its first downstream retail investment in South America. 

As part of the August 2024 deal, the funding will be executed through Class B shares, fully subscribed by both shareholders, allowing Petro Rabigh to receive new capital without altering its governance framework or diluting other shareholders’ voting rights. 

Aramco and Sumitomo also waived $1.5 billion in shareholder loans in two stages — August 2024 and January 2025 — improving Petro Rabigh’s capital structure and remediating accumulated losses.

The waiver improves the company’s capital structure and helps remediate accumulated losses, providing a stronger foundation for future growth.