Saudi Basic Industries Corporation (SABIC) intends to combine its two wholly owned subsidiaries, the Saudi Petrochemical Company (SADAF) and the Arabian Petrochemical Company (PETROKEMYA).
The petrochemical giant said in a market report on Wednesday that SADAF will be fully merged into PETROKEMYA on the basis of the valuation set out in its latest financial statements.
The move is part of SABIC’s strategic plan for increasing efficiency and competition in its global operations, according to the report.
The merger is subject to regulatory approval. Once approved, PETROKEMYA will take control of SADAF’s assets, liabilities and obligations and SADAF will cease to exist as a legal entity as a result.
It is expected that the merger will be completed by the second half of 2019 and there will be no impact on the financial results of SABIC, the report added.
In Al Jubail, Saudi Arabia, SADAF operates a complex comprising six petrochemical plants with a total production capacity of over 4 million tonnes per annum. Light olefins, styrene, MTBE, caustic soda and ethanol can be produced in the complex.
Petrokemya produces light olefins, C4s, benzene, PS, PE, PVC and ABS.
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