The transaction will allow SABIC to become more specialised in petrochemical products and SAFCO will become focused in fertilisers and phosphate.
Wednesday 26, December 2018 BY KUDAKWASHE MUZORIWA
Saudi Arabia Fertilisers Company (SAFCO) has invited banks to pitch for an advisory role in its potential acquisition of stakes in five agri-nutrients businesses now held by SABIC.
SAFCO seeks to buy SABIC's stakes in Al-Jubail Fertiliser Company, National Fertiliser Company as well as Gulf Petrochemicals Industries Company, Ma'aden Phosphate Company, and Ma'aden Wa'ad al Shamal Phosphate Company.
In November, SABIC said it signed a non-binding contract with SAFCO to facilitate the integration of the newly formed company with SAFCO after obtaining regulatory and shareholder approval, and the transaction is expected to be completed by the end of 2019.
SABIC owns 43 per cent in SAFCO, reported Reuters.