DUBAI: Two Saudi petrochemical companies have signed a non-binding agreement on a proposed merger, the pair said in separate Tadawul filings.
Saudi Industrial Investment Group (SIIG) offered a share exchange deal to acquire the remaining 50 percent of the National Petrochemical Company (Petrochem).
Under the deal, SIIG would pay Petrochem’s shareholders by issuing new shares in SIIG. They will also receive 1.27 shares in SIIG in exchange for each share they owned in Petrochem.
HSBC Saudi Arabia is working with SIIG on the deal, while Petrochem hired GIB capital.
Talks of merger began last year, after Aramco, the biggest oil company in the world, acquired a 70 percent stake in Saudi Basic Industries.