Sabic, Aramco Plan `Discovery Phase' to Lock In Merger Savings - Bloomberg

Sabic, Aramco Plan `Discovery Phase' to Lock In Merger Savings - Bloomberg:

Sabic’s chief executive officer said the chemical company’s $69 billion takeover by oil giant Saudi Aramco will yield cost savings for both sides -- it may just take a bit of time.

Once the deal gets antitrust approval, Aramco and Saudi Basic Industries Corp. will set up a team to work on the potential spending reductions, though it’s too early to give an estimate, CEO Yousef Al Benyan said in a phone interview. Proximity will help, as Aramco’s refineries are close to Sabic’s chemical plants in the port of Jubail, and savings are likely to increase over time as the partners pursue growth projects.

“I’m very optimistic on this,” Al Benyan said. “We need to go through a discovery phase to see what exactly are the synergies that will materialize and how can we bring them efficiently and commercially into Sabic.”