Sector News

S Arabia's Sahara to resume merger talks with Sipchem

March 15, 2018
Chemical Value Chain

Saudi Arabia’s Sahara Petrochemicals plans to resume merger talks with Saudi International Petrochemical Co (Sipchem), nearly four years since the negotiations were stalled.

Sahara, in a filing to the Saudi Stock Exchange or Tadawul late on Tuesday, said that discussions will be re-opened “in light of recent changes in the regulatory framework”. No further details were provided.

The two companies postponed in June 2014 their merger talks, which were in advanced stages as of late October 2013.

Sahara said that “implementing the proposed merger through a structure acceptable to both companies and available under the regulatory framework at that time was difficult”.

In December 2013, the two companies signed a memorandum of understanding (MOU), under which Sipchem would issue 0.685 new shares for every one outstanding Sahara share. This meant an issuance of 300.6m new Sipchem shares in exchange for all the issued shares of Sahara.

Manufacturing operations of Sipchem and Sahara Petrochemicals in Saudi Arabia are mostly based in Jubail.

Sipchem manufactures and markets 2.2m tonnes of petrochemicals, while Sahara Petrochemicals has nine petrochemical affiliates, including include Al-Waha Petrochemicals (75%-owned), which produces propylene and polypropylene (PP), based on information available on the companies’ websites.

By Pearl Bantillo

Source: ICIS News

comments closed

Related News

January 29, 2023

Dow and 3M cut thousands of jobs

Chemical Value Chain

3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.

January 29, 2023

Sweden discovers Europe’s largest rare earths deposit

Chemical Value Chain

Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.

January 29, 2023

Avantium to supply Henkel with plant-based FDCA

Chemical Value Chain

Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).

How can we help you?

We're easy to reach