Apollo said to lead buyout group for $10bn Aramco deal

Apollo said to lead buyout group for $10bn Aramco deal

Apollo Global Management is leading a group of investors aiming to buy a roughly $10 billion (£7.2bn) stake in Saudi Aramco's oil pipelines, people familiar with the matter said.

The buyout firm's consortium will include U.S. and Chinese investors and has been shortlisted to make a final offer, the people said, asking not to be identified as the matter is private.

Aramco, Saudi Arabia's state energy company, has narrowed the pool of bidders and Canada's Brookfield Asset Management and BlackRock are no longer involved, the people said.

While the Apollo consortium is currently seen as a leading contender, another bidder could still emerge as the winner, the people said.

Aramco, the world's biggest oil company, may choose a winner in the coming weeks, though it could decide not to sell the stake, according to the people.

Representatives for Apollo, Aramco, BlackRock and Brookfield declined to comment.

Opening Up

If an agreement is reached, it could rank among the largest infrastructure deals this year and be one of Apollo's biggest ever, data compiled by Bloomberg show.

The potential sale is part of Saudi Arabia's plan to further open up to foreign investors and use the money to diversify the economy. Asset disposals also go some way to helping the energy giant