LEADERBOARD • INVESTING By Jamila Gandhi
Despite the turbulent year that 2020 has been, some companies in the Middle East have managed to expand their businesses and secure acquisitions. Here’s a look at some prominent mega-deals of 2020.
LEADERBOARD •
INVESTING
8
2020’s Biggest Mergers And Acquisitions In The Middle East
ADNOC Gas Pipelines Deal value: $20.7 billion
F O R B E S M I D D L E E A S T.CO M
Saudi Aramco and the Saudi Basic Industries Corporation (SABIC) Deal value: $69.1 billion
Saudi Aramco acquired a majority stake of 70% in SABIC from the Saudi Public Investment Fund by signing a share purchase agreement in a deal valued at $69.1 billion in June. The deal’s loan payments will be paid between August 2, 2020, and April 7, 2028. Aramco has also agreed to put down an advance payment of $3 billion in April 2022, depending on certain oil market conditions in 2021. The acquisition will enhance Aramco’s chemical strategy by increasing the resilience of cash flow generation, expanding procurement capabilities, supply chain, manufacturing, and integrating upstream and refining with SABIC, among other benefits. DECEMBER 2020
Image credit: Aramco
In one of the largest ever global energy infrastructure transactions, the Abu Dhabi National Oil Company (ADNOC) announced in June a $20.7 billion Energy Infrastructure Deal in its gas pipeline business, which will bring $10.1 billion in foreign direct investment into the U.A.E. from a variety of international investors. ADNOC will still hold a 51% majority stake. ADNOC Gas Pipeline is a newly formed subsidiary of ADNOC with lease rights to 38 gas pipelines covering 982.3 kilometers.
