Saudi International Petrochemical (Sipchem) and compatriot Sahara Petrochemical have signed a memorandum of understanding (MoU) for a merger that will see Sahara becoming a subsidiary of Sipchem. The companies begin due diligence and continued negotiations with a view to signing a merger agreement in the first half of 2014.
According to a joint statement “the proposed merger is expected to enhance the [combined] company’s leading position in the local and international petrochemical industry. The combined business is expected to result in significant synergies related to operational efficiencies and the combined company would become a stronger platform for further growth in the long term.” (CONTINUED - 282 WORDS)
