Sipchem and Sahara start merger talks

Updated 05 June 2013
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Sipchem and Sahara start merger talks

JEDDAH: Saudi Arabia’s Sahara Petrochemical and Saudi International Petrochemical Co. (Sipchem) said they had begun initial talks on a potential merger.
The Zamil Holding Company Group, one of the Kingdom’s most prominent family businesses, is a major shareholder in both companies.
A feasibility study will be carried out by the two companies over the next five months, with the plan then put to shareholders and the regulator for approval, separate statements from both companies to the Saudi stock exchange said.
No value for the potential merger was given.
Zamil, which has interests in petrochemicals, steel, housing, construction and other industrial sectors, owns 7.9 percent of Sahara and 9.6 percent of Sipchem.
The government pension fund also has holdings of more than 5 percent in both companies.
Sipchem announced a fall in first-quarter net profit by nearly 60 percent year-on-year to SR 64.5 million ($17.2 million) in April, which it attributed to planned plant shut-downs for maintenance.
Sahara’s net income in the same period tripled to SR 142 million.
Sipchem makes methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer, as well as carbon monoxide, its website says.
Sahara makes propylene, polypropylene, ethylene and polyethylene.


Pompeo says China is engaging in ‘predatory economics 101’

Would China have allowed America to do to it what China has done to America asked US Secretary of State Mike Pompeo. (AP)
Updated 18 June 2018
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Pompeo says China is engaging in ‘predatory economics 101’

  • He said China’s recent claims of “openness and globalization” are “a joke.”

DETROIT: China is engaging in “predatory economics 101” and an “unprecedented level of larceny” of intellectual property, Secretary of State Mike Pompeo told a business audience Monday.
Pompeo made the remarks at the Detroit Economic Club as global markets reacted to trade tensions between the US and China. Both nations started putting trade tariffs in motion that are set to take effect July 6.
He said China’s recent claims of “openness and globalization” are “a joke.” He added that China is a “predatory economic government” that is “long overdue in being tackled,” matters that include IP theft and Chinese steel and aluminum flooding the US market.
“Everyone knows ... China is the main perpetrator,” he said. “It’s an unprecedented level of larceny.”
“Just ask yourself: Would China have allowed America to do to it what China has done to America?” he said later. “This is predatory economics 101.”
The Chinese Embassy in Washington did not immediately respond to a request for comment.
Pompeo raised the trade issue directly with China last week, when he met in Beijing with President Xi Jinping and others.
“I reminded him that’s not fair competition,” Pompeo said.
President Donald Trump has announced a 25 percent tariff on up to $50 billion in Chinese imports. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey. Trump also has slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies.
Wall Street has viewed the escalating trade tensions with wariness, fearful they could strangle the economic growth achieved during Trump’s watch. Gary Cohn, Trump’s former top economic adviser, said last week that a “tariff battle” could result in price inflation and consumer debt — “historic ingredients for an economic slowdown.”
Pompeo on Monday described US actions as “economic diplomacy,” which, when done right, strengthens national security and international alliances, he added.
“We use American power, economic might and influence as a tool of economic policy,” he said. “We do our best to call out unfair economic behaviors as well.”