Riyadh – Mubasher: The board of the National Petrochemical Company (Petrochem) approved to begin initial talks with the Saudi Industrial Investment Group (SIIG) to study the economic feasibility of merging the two companies.

No agreement has been reached so far on the final structure of the potential deal, according to a stock exchange filing on Sunday.

SIIG owns 50% of Petrochem.

The entry into these discussions does not necessarily mean that the potential deal will take place, Petrochem said, noting that reaching a final agreement will be subject to the conditions and approvals of relevant bodies and the extraordinary general meetings (EGMs) of both firms.

Further details will be announced in due course, the statement concluded.