On Sunday, Saudi Arabian petrochemical producers Saudi Industrial Investment Group (SIIG) and the National Petrochemical Company (Petrochem) announced that they had started talks regarding a prospective merger.
Both companies’ boards have approved the initial discussions to study the feasibility of a merger but no agreement has been reached on any final structure of a merged entity. The deal is more seen as a merger as SIIG owns 50% of Petrochem but the two are similar in size.
According to Refinitiv data, in June the two firms had combined assets of USD9.5 billion. SIIG had total assets of SAR19.2 billion (USD5.12 billion) by the end of that month while Petrochem had SAR16.4 billion (USD4.378 billion).
However, Petrochem has a bigger market value than SIIG when its market capitalization is USD3.7 billion.
