Saudi International Petrochemical Co. (Sipchem) said its performance and growth plans remain on track despite the recent decision to end merger talks with Sahara Petrochemical.

Addressing a press conference, Sipchem CEO Ahmad Al-Ohali stressed that both companies were still convinced that the proposed merger was in the interest of their shareholders.

He said: While it is unfortunate that our merger discussions are postponed, I would like to start by thanking those who worked hard on this project from the two companies and their advisers for their outstanding efforts. This has been a long process which, despite not achieving its central aim, has proved invaluable to our understanding of our company and the markets in which it operates.”

The two companies said earlier they had decided to postpone merger plans, which were initiated in June last year, blaming the current regulatory framework for the collapse of the deal.

If the merger had gone ahead, it would have been only the second ever between listed Saudi firms and would have created a company with a market value of $5.7 billion.

“I must stress that nothing has changed for our day-to-day business. Our company’s growth ambitions remain the same,” the CEO said in remarks published in a Reuters report.

“So far in the second quarter, Sipchem’s operational and performance objectives for its operating plants remain on track,” he said, adding further detail would be announced in its next earnings statement.

He said Sipchem would also continue to seek out “solid, value-creating investments on a global basis”.

Al-Ohali stressed that Capital Market Authority (CMA) and the Ministry of Commerce had facilitated the merger process.

“The Saudi market welcomes companies which would like to merge. Our situation is different because each company has its own issues and circumstances,” said the CEO.