Sahara Petrochemicals has announced the signing of a non-binding Memorandum of Understanding with Saudi International Petrochemical Company (Sipchem) for a merger deal valued at just over $2bn.
Sipchem will make an offer to buy all of Sahara’s shares and each Sahara shareholder will receive 0.8356 new Sipchem shares, the companies said. Sipchem and Sahara are working to enter a binding agreement by February 28.
Aligned with the goals of Saudi Vision 2030, which aims to create a thriving private sector in the Kingdom, the merger is expected to deliver multiple strategic benefits to the combined business, including: Strengthening the product portfolio, diversifying feedstock supply and building out presence along the value chain and increasing scale and resilience in the evolving petrochemicals sector, both in the Kingdom and internationally.
The company also said the merger will build on the “competitive advantages and complimentary capabilities of Sahara and Sipchem to provide benefits commercially, operationally and functionally”.
For more information visit: www.saharapcc.com and www.sipchem.com
4th October 2018
