(Arabian Oil and Gas) -- The board of directors of Saudi Arabia's National Petrochemicals Company (Petrochem) have decided to approach the SIIG board of directors, to propose a study to merge both Petrochem and Saudi Industrial Investment Group (SIIG).
During the board meeting, which took place on the 10th of April, the Petrochem board reviewed the progress of its petrochemical project in Jubail industrial city. The complex is set to start operation by the end of this year, and will produce ethylene, polyolefins and aromatics.
SIIG has three nearby operational downstream projects in joint venture with Chevron. It has been reported that Petrochem management wish to integrate elements of its production with the SIIG facilities, with a view to a potenital merger in the future.
⌠If SIIG's board agrees to proceeding, the process of evaluating such a merger will start, including evaluating the assets of each company, and proceed on getting the necessary approvals from authorities and relevant shareholders, the company said in a statement published on Saudi stock exchange ⌠Tadawul. The company said that SIIG's board is due to meet this month.