The Saudi Arabian Tadawul All-Share Index slipped by 0.07 per cent to 9,853.51 points on Sunday, June 8. -Saudi International Petrochemical Company, better known as Sipchem, dived 2.13 per cent to SAR32.30, while Sahara Petrochemical Company added 0.32 per cent to SAR22. Earlier in the day, Sipchem revealed that both companies have made positive progress in the confirmatory due diligence process, which indicated that the proposed merger shall achieve a positive milestone for both the firms from economic, marketing and technical perspectives; which, in turn, will benefit both companies’ shareholders and employees. The intention to merge was announced on December 4, 2013, based on a MoU between Sipchem and Sahara. However, Sipchem reveals that: “Although both companies are still convinced that the proposed merger is in the interest of their shareholders, the companies reached a conclusion that it is difficult to implement this merger under the current regulatory framework using a structure acceptable to both companies, where both companies will continue to exist, while achieving operational integration. The company and Sahara have, therefore, decided to postpone commercial negotiations related to the proposed merger and to postpone entry into the proposed merger for the time being. Consequently, the companies, unlike what was announced earlier, will not sign a merger agreement during the first half of this year.”
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