Saudi Aramco began executing the acquisition of a 70-per-cent stake in Saudi Basic Industries Corp. through block trades worth 259 billion riyals (US$69 billion) on Sunday.

A total of 2.1 billion Sabic shares changed hands on the Saudi exchange in four transactions as the oil company moves ahead with the purchase from the kingdom’s Public Investment Fund. Aramco will pay 93.3 billion riyals (about US$24.8 billion) this week as a first installment in the deal, Maaal news website reported, citing unidentified people.

Under the terms of the acquisition, Aramco will pay the remaining US$44 billion in four installments until September 2025. The purchase of Sabic is a key part of Aramco’s strategy of expanding from oil production into chemicals, and it also serves as a way to help PIF raise cash to fund its investment plans.

The initial agreement involved Aramco paying 123.4 riyals (US$32.85) a share for Sabic, a value 39 per cent higher than the price of the stock on Sunday. Sabic lost 0.6 per cent to trade at 88.50 riyals in Riyadh on Sunday, while Aramco declined 0.3 per cent to 32.25 riyals.

“The deal completion is on-track with expectations to be finalized before the end of the second quarter,” Aramco said in a statement. “All necessary pre-closing regulatory clearances have been obtained.”