Saudi Sipchem, Sahara sign binding agreement for merger
by ChemOrbis Editorial Team - content@chemorbis.com
According to an official press release, Sahara Petrochemicals and Saudi International Petrochemical Company (Sipchem) entered into a legally binding agreement on December 5, after the signing of a non-binding memorandum of understanding in early October.
Upon completion of the transaction, all of the Sahara’s shares will be delisted from the Saudi Stock Exchange and the company will become a wholly-owned subsidiary of Sipchem.
The merger, which will be executed through a share swap, is expected to deliver multiple strategic benefits to the combined business, including strengthening the product portfolio, diversifying feedstock supply and building a presence along the value chain.
The agreement is reportedly valued around SAR8.25 billion ($2.2 billion) while the merger is expected to create a company worth SAR16 billion ($4.26 billion).
Upon completion of the transaction, all of the Sahara’s shares will be delisted from the Saudi Stock Exchange and the company will become a wholly-owned subsidiary of Sipchem.
The merger, which will be executed through a share swap, is expected to deliver multiple strategic benefits to the combined business, including strengthening the product portfolio, diversifying feedstock supply and building a presence along the value chain.
The agreement is reportedly valued around SAR8.25 billion ($2.2 billion) while the merger is expected to create a company worth SAR16 billion ($4.26 billion).
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