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Saudi Arabia oil giant to get £1.5BN Treasury cheque to float in London

Saudi Arabia, November 11, 2017

Competition is coming from New York over the deal, which is estimated to be worth £1.6 trillion and would be the largest ever to go public.

Aramco's aim is to sell a five per cent stake to investors to finically assist the Saudi Arabian government.

Back in April, both Prime Minister Theresa May and London Stock Exchange boss Xavier Rolet went to Saudi Arabia to discuss possibilities of a deal.

A few months ago the Financial Conduct Authority (FCA) met with Saudi officials said listing rules would be watered down to make Britain more attractive to the Saudi firm.

The FCA's review of this move brought plenty of criticism from investors.

The Government has committed to helping the foreign state-owned company to borrow from banks. The Treasury's UK Export Finance group is guaranteeing £1.5billion for Aramco to spend on investment.

The meaning behind this deal, is that if the company is unable to pay the cash back, UK taxpayers will refund creditors.

Many have viewed this deal with suspicion.

express