Saudi Petrochemical Producers Sign $2.2 Billion Merger Agreement - Bloomberg

Saudi Petrochemical Producers Sign $2.2 Billion Merger Agreement - Bloomberg:

Saudi International Petrochemical Co. signed a non-binding agreement to acquire Sahara Petrochemical Co. in an all-share deal valued at just over $2 billion.

Saudi International Petrochemical Co., or Sipchem, will issue each Sahara shareholder with 0.8356 new Sipchem shares, the companies said in statements Wednesday. The deal is valued at about $2.2 billion, according to Tuesday’s closing price. Shareholders of the companies would each own 50 percent of Sipchem stock.

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.