Riyadh – Mubasher: Sahara Petrochemicals Co and Saudi International Petrochemical Company (Sipchem) on Thursday announced that their potential merger may achieve earnings before interest, tax, depreciation and amortization (EBITDA) ranging between SAR 175 million and SAR 225 million per year.

“The full synergy potential is expected to be realised by the end of the third year following the completion of the transaction,” the two companies said in a separate statement to the Saudi Stock Exchange (Tadawul).

In March 2018, Sipchem stated it would implement merger negotiations with Sahara.

Sipchem’s CEO Ahmed Al Ohali said last April that his company hopes to complete a merger with Sahara Petrochemicals before the end of 2018.

Sahara Petrochemical last reported a 13% year-on-year profit increase during the full-year 2018, logging SAR 500.8 million, from SAR 444.5 million.

Sipchem posted a 75.67% year-on-year decline in profits for the fourth quarter of 2018, recording SAR 40 million against SAR 164 million.