Sunday 20 September 2020

#SaudiArabia's SIIG and Petrochem in merger talks | Reuters

Saudi Arabia's SIIG and Petrochem in merger talks | Reuters:

Saudi Arabian petrochemicals companies Saudi Industrial Investment Group (SIIG) 2250.SE and the National Petrochemical Company (Petrochem) 2002.SE have begun talks over a potential merger, they said on Sunday.

A deal would mark further consolidation in the Saudi petrochemicals sector after oil giant Saudi Aramco 2222.SE bought a 70% stake in Saudi Basic Industries 2010.SE in June.

The SIIG and Petrochem boards have approved initial discussions to study the feasibility of a merger but no agreement has been reached on any final structure of a merged entity, the companies said in separate statements.

SIIG owns 50% of Petrochem but the two companies are similar in size, suggesting a deal would be a merger of near equals.

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