Saudi Petrochemical Producers Plan to Return to Merger Table
(Bloomberg) -- Sahara Petrochemical Co. and Saudi International Petrochemical Co. plan to resume talks about a potential merger, four years after a tie-up was put on hold.
Discussions will begin after “recent changes in the regulatory framework,” both companies said Tuesday in separate statements to the Saudi stock exchange. The chief executive officers of both companies told Bloomberg Monday that they were again evaluating a merger, sending shares of Saudi International Petrochemical, also known as Sipchem, up 2.6 percent.
The initial merger, which proposed a share swap, was put on hold because both companies said it would be difficult to proceed using a structure acceptable to both sides under the regulatory framework at the time.
The companies have a combined market value of 14.7 billion riyals ($3.9 billion). Al-Zamil Holding Group is the biggest shareholder of both companies, with 9.7 percent of Sipchem and 7.9 percent of Sahara, according to data compiled by Bloomberg.
To contact the reporter on this story: Anthony DiPaola in Dubai at email@example.com To contact the editors responsible for this story: Nayla Razzouk at firstname.lastname@example.org Claudia Carpenter
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.