Sahara, Sipchem deny reports on merger terms

Sahara Petrochemicals Co. (Sahara) and Saudi International Petrochemical Co. (Sipchem) have denied media reports speculating the terms and structure of a potential merger, they both said in separate statements to Tadawul on Monday.

Negotiations are still ongoing, as well as the valuation of the two companies, they said.

Any material developments on the merger will be revealed as they occur, they added.

Sipchem in March said it would resume merger discussions with Sahara, following changes in the merger and acquisition (M&A) regulatory framework.

The two companies signed a non-binding memorandum of understanding to start talks for a potential merger in December 2013. However, the negotiations were called off in June 2014, citing “inadequate regulatory framework.”