Riyadh – Mubasher: Basic Chemical Industries Company (BCI) intends to acquire 49% ownership of UAE-based Union Chlorine, according to a bourse filing on Wednesday.

The Saudi company has signed a memorandum of understanding (MoU) with Oman Chlorine, Horizon Energy, MS Union Chlorine, and Oman Industrial Development Company on 13 July.

The non-binding letter of intent between BCI and the partners of Union Chlorine holds a duration of 90 days from the date of signing the deal.

The Saudi company aims to diversify its production base and markets through the stake acquisition, while including the UAE as a production market.

BCI said there was no financial impact following the signing of the non-binding agreement.

It is worth noting that the Saudi firm recorded a net profit after Zakat and tax worth SAR 14.41 million during the first quarter (Q1) of 2021.