Saudi Fund Snaps up $1bn in Shares in European Majors: Press

Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF) has taken stakes worth $1bn in four European majors, the Wall Street Journal (WSJ) reported on April 9, citing sources.

PIF acquired shares in Norway's Equinor worth $200mn last week, the newspaper reported. It also bought stakes in Anglo-Dutch Shell, France's Total and Italy's Eni, it said, valuing the four acquisitions at $1bn. A Saudi official told the WSJ that PIF may make similar deals in the future.

PIF, worth $300bn, is a vehicle the kingdom uses to make investments at home and overseas.

Shares in the four European firms have fallen steeply over the past month, as a result of the Covid-19 crisis' impact on fuel demand and Saudi Arabia and other Opec members cutting prices and increasing production in order to seize market share. This has provided opportunities for investors betting on a price recovery.

Shell's stock slumped to £9.71 ($12.00) per share on March 18, down 57% since early January, but has since recovered and closed at £14.93 per share on April 8. Total's share price similarly bottomed out at €21.55 per share on March 18, down about 57% since the start of the year, but then rebounded, closing at €33.45 yesterday.

Shares in Equinor fell by more than 30% since the start of this year before rising 18% last week, while shares in Eni had dropped around 54% by mid-March but have since rallied by around 43%.

Saudi Arabia, Russia and other members of the Opec+ alliance, as well 10 observer countries, are due to hold a meeting at 13:00 GMT to reach an agreement on a cut to global output, in order to tighten the market.