SIIG, Petrochem to begin due diligence on proposed merger

Logo of Saudi Industrial Investment Group and National Petrochemical Co.

Saudi Industrial Investment Group (SIIG) and National Petrochemical Co. (Petrochem) decided to commence reciprocal due diligence on merger following the completion of the initial economic feasibility study, the companies said in separate statements to Tadawul today, April 15, 2021.

The companies will also negotiate the terms and conditions and share information regarding the proposed transaction.

SIIG appointed HSBC Saudi Arabia as financial advisor and Khoshaim & Associates as legal advisor concerning the proposed transaction.

On the other hand, Petrochem appointed GIB Capital as financial advisor and Abuhimed Alsheikh Alhagbani Law Firm as legal advisor.

The companies aim to meet the requirements of the proposed merger before year-end, as well as present the proposed deal to their respective shareholders under applicable laws and regulations. The completion of the proposed merger is subject to several conditions, including obtaining approvals from the competent authorities.

SIIG and Petrochem are under no obligation to proceed with the proposed transaction, the statement noted. Therefore, the commencement of due diligence does not necessarily mean that the parties will reach a final and binding agreement or complete the proposed deal.

It is not possible to determine the event’s expected completion date and associated costs as it is subject to discussions between the companies and the due diligence results, the statements stated, adding any material developments will be disclosed in due course.

According to data compiled by Argaam, SIIG owns 50% of Petrochem.

In September 2020, SIIG and Petrochem received approval from their respective boards to start initial discussions to study the economic feasibility of a merger.

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