Riyadh – Mubasher: Tadawul-listed Sahara Petrochemicals Co and Saudi International Petrochemical Company (Sipchem) are reportedly planning to close Merger & Acquisition deals in the US and Asia following the completion of their merger.

The combined assets of the new company, Sahara International Petrochemical Company, will reach SAR 22 billion, Reuters said.

“Combining Sipchem and Sahara will create an integrated petrochemical leader with an improved competitive position in Saudi Arabia and globally,” the international news agency reported, citing Sahara’s CEO Saleh Bahamdan as saying.

In April, Saudi Arabia's Capital Market Authority (CMA) approved Sipchem’s request for raising its capital to SAR 7.333 billion from SAR 3.667 billion. Sipchem will carry out the capital raise by issuing 366.7 million shares in a bid to finalise the merger deal.

“We are looking at opportunities in Asia and U.S. markets for either acquisition or organic growth, JVs, and locally we are also exploring,” Sipchem’s CEO Abdullah Al-Saadoon commented.

Both top executives revealed that growth opportunities would be assessed after the appointment of the new entity’s management and board.

Saudi Arabia-based Sahara Petrochemical reported a 1.78% year-on-year profit increase during the first quarter of 2019, recording SAR 142.7 million.

Sipchem posted a 24.24% year-on-year profit drop in the first quarter of 2019, recording SAR 114.7 million ($30.59 million).