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Saudi petchems firms Sipchem and Sahara Petrochemical have completed a “mergers of equals” to create a new company Sahara International Petrochemical Company, whose shortened name will be the familiar ‘Sipchem’.
Sahara’s shares were de-listed from the Saudi Stock Exchange Tadawul on 22 May, with Sahara becoming a wholly-owned subsidiary of the new Sipchem. The Saudi Capital Market Authority (CMA) last month approved the old Sipchem’s request to issue almost 367 million shares, taking its total number of shares to over 7.33 billion, to be exchanged for all the shares of Sahara to complete the transaction ( MEES, 26 April ).
The newly created Sipchem now operates two polyolefins complexes that are less than 7km apart within the Jubail Industrial City on the Saudi Gulf coast. The merger is aimed at “driving efficiency and productivity of the closely situated asset portfolios.” The companies first announced a plan to merge in December 2013, but shelved it after the 2014 collapse in crude oil prices undermined their business outlook ( MEES, 26 August 2016 ). (CONTINUED - 162 WORDS)