Saudi firms create Middle East’s largest petrochem company in a new deal

Dubai: The Saudi Industrial Investment Group has offered to acquire the rest of National Petrochemical Co. in a share-swap, creating one of the largest petrochemical companies in the Middle East.

National Petrochem shareholders will receive 1.27 shares in Saudi Industrial in exchange for each share they hold, according to a statement. The transaction will value National Petrochem at SR24 billion ($6.4 billion).

The Saudi Industrial Investment Group, known as SIIG, already owns half of National Petrochemical. The companies started talks to merge, potentially creating a firm with $11 billion in assets as Middle Eastern energy companies assess their options in a lower oil-price environment.

The merger comes amid a boom in prices for chemicals and other petroleum products as major economies recover from the coronavirus pandemic. The stock of both companies is up almost 50 per cent this year.