Saudi Aramco announced that it is in early talks to buy a stake in one of the world’s largest petrochemical companies, an acquisition that would diversify the state-run oil giant’s business even as its proposed initial public offering remains in doubt.
A deal for a stake in Saudi Basic Industries Co., or SABIC, would allow Aramco to vastly expand its petrochemical operations, a so-called downstream business, and move toward its stated goal of becoming an integrated-energy company along the lines of Exxon Mobil Corp. and Royal Dutch Shell .
Aramco, which said it has no plans to acquire any publicly held shares of SABIC, didn’t disclose the size of the stake under discussion.
