Published on October 5, 2018
Sahara Petrochemicals Company and Saudi International Petrochemical Company have signed a non-binding agreement to merge, in a deal valued at $2.2 billion based on share price.
As per report, under the arrangement, which is still contingent on the completion of a binding implementation agreement, Sipchem will make an offer to acquire all shares in Sahara.
The merger will help to strengthen the product portfolio of the firms and diversify their feedstock supply, among other things, while simultaneously, “increasing scale and resilience in the evolving petrochemicals sector, both in the kingdom and internationally
As per report, both firms also have facilities located close to each other in Jubail, Saudi Arabia’s industrial and petrochemical hub along the Gulf. Sahara has appointed Morgan Stanley as its financial advisor on the transaction, while Sipchem has tabbed HSBC.
