SAUDI ARABIA: Sahara Petrochemical & Sipchem advance proposed merger with signing of MOU

"Indeed, the expectation is that the proposed merger will be positively transformational and potentially have significant benefits for both companies," said a joint statement issued by Sahara Chief Executive and Managing Director Esam Fouad Himdy and Sipchem Chief Executive
and Managing Director Ahmad Al-Abdulaziz Al Ohali.

A merger will "result in a larger, more capable and more competitive company that can increase investments in new projects in the Kingdom and globally," they added.

In the event a merger occurs, it will be implemented by way of exchange of shares, with Sahara becoming a subsidiary of Sipchem.

The two companies intend to complete their evaluation of the planned merger with the hope of signing a merger agreement during the first half of 2014.

Source: Weekly "PetroChemical News", Durham, NC, USA; 9 Dec 2013
(Syed Rashid Ali, Karachi, Pakistan)