EXCLUSIVE-Major Chinese investors in talks to take Aramco stake -sources

US aramco investors chinese exclusive
  • Date: 29-Apr-2021
  • Source: Zawya
  • Sector:Economy
  • Country:Gulf
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EXCLUSIVE-Major Chinese investors in talks to take Aramco stake -sources

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Sovereign wealth fund China Investment Corporation (CIC) was among those that could invest, two sources told Reuters.

Aramco was talking to CIC, as well as Chinese national oil companies, said one of the sources close to CIC. None of the Chinese companies could be reached immediately for comment.

Aramco had been in touch with Chinese investors for a few years and CIC is the most likely investor, said the second source with a state-backed private equity fund.

"The kingdom does have close relations with China," said a third source, who is close to Aramco. "The major shareholder will decide what to do with their shares."

Saudi Arabia, the world's biggest oil exporter, retained its position as China's biggest crude oil supplier for a seventh consecutive month in March.

Another source said before the COVID-19 pandemic, Aramco had toured around China looking for investors, talking to all the major state investors with overseas money, but few were interested. CIC and China's Silk Road Fund were also among the firms they approached.

Aramco, the world's biggest oil company, listed on the Saudi bourse in late 2019, raising $25.6 billion in the IPO and later sold more shares under a "greenshoe option" to raise the total to $29.4 billion.