Sipchem - Sahara deal: a merger of equals in the Kingdom of Saudi Arabia petrochemical industry

Saudi International Petrochemical Company (Sipchem) and Sahara Petrochemical Company announced this week that they have entered into a legally binding agreement for a merger of the two businesses. In order to implement the transaction, Sipchem will make an offer to all Sahara shareholders to acquire all their shares in Sahara. Sipchem will issue, and each Sahara shareholder will receive, 0.8356 new Sipchem shares for each Sahara share held by them (the “Exchange Ratio”). The deal is valued at just over 2 Billion USD currently. This insight provides a closer look at the profile and petrochemical portfolios of Sipchem and Sahara and an assessment of some of the expected synergies key and strategic drivers for this merger of equals.