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Saudi Arabia: Petrochemical companies agree to US$2.2b merger

By  |  October 3, 2018

According to a report from Bloomberg on Wednesday, October 3, Saudi International Petrochemical has signed a non-binding agreement to acquire Sahara Petrochemical in an all-share deal valued at just over US$2 billion.

The agreement comes four years after the companies put a tie-up on hold, saying it was difficult to proceed with the merger using a structure acceptable to both sides under the regulatory framework at the time. Since then, Saudi Arabia’s Capital Market Authority has introduced new rules intended to facilitate mergers and acquisitions.

According to Bloomberg, a merger would increase the scale and resilience of the petrochemical sector in Saudi Arabia and internationally, according to the statements. It will also provide cost synergies, improve access to feedstock and capital markets.

Full Content: Bloomberg

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