Saudi Basic Industries Corporation (Sabic) has confirmed plans to merge subsidiaries Saudi Petrochemical Company (Sadaf) and Arabian Petrochemical Company (Petrokemya) as part of an operational excellence move.
A filing from Sabic on the Saudi Stock Exchange (Tadawul) said all of Sadaf’s assets, rights, liabilities and obligations would be transferred to Petrokemya.
Subject to relevant regulatory approvals, the merger will mean Sadaf will cease to be a legal entity.
Founded in 1980 and based in Jubail, Sadaf produces ethylene, styrene, caustic soda, crude industrial ethanol and other petrochemical products.
It is expected that the merger will be completed in the second half of this year, but will not have an impact on Sabic’s financial position.
The news follows Sabic’s announcement that the firm experienced a 12 per cent decline in net profits in the fourth quarter of 2018, after a 17 per cent rise in 2018 profits.
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