The Competition Tribunal of South Africa has approved Saudi Arabian Oil Co.'s acquisition of Saudi Basic Industries Corp., or SABIC, according to a Sept. 27 release.
The Competition Commission of South Africa recommended that the tribunal approve the merger without conditions. The commission found the transaction, taken as a whole, is unlikely to lessen competition in any relevant market significantly and that the merger would not have a negative effect on public interest.
SABIC has a subsidiary operating in South Africa called SABIC SA (Pty) Ltd., which provides business support functions to its parent firm. The company, through several subsidiaries, supplies products to customers in South Africa.
On March 27, Saudi Aramco signed an agreement to purchase a 70% stake in SABIC from the Public Investment Fund of Saudi Arabia for $69.1 billion.
