Saudi firms start talks to form $11 billion chemicals maker

Baku, September 21, AZERTAC
Saudi Industrial Investment Group and National Petrochemical Co. started talks to merge, potentially creating a firm with $11 billion in assets as Middle Eastern energy companies assess their options in a lower oil-price environment. The shares climbed, according to Bloomberg.
The discussions are at an initial stage and no agreement has been reached, the companies said Sunday. Saudi Industrial owns 50% of National Petrochemical, and they had attempted a merger nine years ago.
National Petrochemical’s shares closed at the highest level since 2014, giving it a market value of about 15 billion riyals ($4 billion). Saudi Industrial ended 5.5% higher in Riyadh.
The possible merger comes as energy companies in countries such as Saudi Arabia, Qatar and the United Arab Emirates restructure their operations to cope with a market that’s under strain from lower demand.
Last year, Saudi International Petrochemical Co. completed a buyout of Sahara Petrochemical Co. That was followed by Saudi Aramco buying a majority stake in the largest Saudi chemical maker in a deal that was valued at about $70 billion.

Oil & gas 2020-09-21 13:01:00