Riyadh – Mubasher: Saudi Basic Industries Corp. (SABIC) on Wednesday announced its plans to merge its two wholly-owned subsidiaries Saudi Petrochemical Company (SADAF) and Arabian Petrochemical Company (PETROKEMYA).

After this merger, SADAF’s assets, liabilities, obligations, and rights will be transferred to PETROKEMYA's based on SADAF’s financial status valuation, SABIC said in a statement to the Saudi Stock Exchange (Tadawul).

This merger is a part of SABIC’s growth plans to boost efficiency and competitiveness of its global operations. Through it, SABIC seeks to "create a more efficient entity which will increase the optimisation of assets and unlock value from the synergies between the two companies’ product streams. This will also create more effective and streamlined operations, maintenance and project execution."

SABIC expects this transaction to be completed in the second half of 2019 with no material impact on its financial position.

SABIC last reported a 16.87% increase in profits for the full-year 2018, reaching SAR 21.54 billion, compared to SAR 18.43 billion in 2017.

By 10:12 am Saudi time, SABIC’s stock inched up 0.33% to SAR 122.20.