Sinopec to buy stake in Saudi petrochemical firm for $562M

• Sinopec (NYSE:SNP) agrees to acquire a stake in a Saudi Arabian petrochemical company for $562M to enhance its global network and international operation of the refining segment.
• SNP will own a 37.5% interest in Yanbu Co., while its partner Saudi Aramco will hold the remaining of 62.5%.
• The deal came after SNP posted a 12% Y/Y decline in Q3 net profit on weaker oil demand; growth prospects look poor with no obvious catalysts ahead and a reduced capital spending budget, Bernstein's Neil Beveridge says.