Saudi Arabia’s SIIG, Petrochem starts due diligence on proposed merger
Nurluqman Suratman
16-Apr-2021
SINGAPORE (ICIS)–Petrochem and the Saudi Industrial Investment Group (SIIG) has completed the initial feasibility study on a proposed merger and will proceed with further due diligence, the Saudi Arabia-based producer said late on Thursday.
“Petrochem would like to announce a recent development in this regard, which is the completion of the initial economic feasibility study, on the basis of which Petrochem and SIIG decided to commence reciprocal due diligence, negotiate the terms and conditions of the proposed transaction and the sharing of information between the two companies in this regard,” it said in a filing on the Saudi bourse, Tadawul.
Both firms aim to satisfy the requirements applicable to the proposed transaction before the end of the year and to present the prospective deal to their respective shareholders in accordance, Petrochem said.
“It is not possible to determine the event’s expected completion date as it is subject to discussions between Petrochem and SIIG and the due diligence results in relation to the proposed transaction,” it said.
SIIG mainly engages in industrial investment activities, particularly in petrochemicals.
It has a 50% stake in Petrochem, which controls 65% of the Saudi Polymers Company and of Gulf Polymers Distribution Company.
Saudi Polymers produces more than 1.7m tonnes/year of polymers at the Jubail Industrial City, which are marketed by Gulf Polymers.
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