Saudi Aramco’s sole control over SABIC gets EU nod

The acquisition of sole control over Saudi Basic Industries Corporation (SABIC) by energy giant Saudi Aramco complies with EU Merger Regulation, the European Commission said.
SABIC is primarily active downstream from crude oil in the production and sale of commodity chemicals, intermediates, polymers, fertilisers and metals.
Saudi Aramco is primarily active in the upstream petroleum value chain, namely in the exploration, production, and marketing of crude oil, natural gas, liquified petroleum gas (LPG) and fuels.
The Commission said the proposed acquisition would raise no horizontal competition concerns given the companies’ moderate combined market shares in relation to the various petrochemical products they supply, and the fact that a sufficient number of credible suppliers will remain active in the relevant markets.
Moreover, the Commission said there were no any anti-competitive vertical effects resulting from the combination of these businesses.