Wednesday 23 September 2020

Sabic signs share-purchase deal with Saudi fertilizer group

RIYADH, December 26, 2019

Sabic has entered into a share-purchase agreement with its manufacturing affiliate, the Saudi Arabian Fertilizer Company (Safco), under which the latter will acquire the newly formed Sabic Agri-Nutrients Investment Company (Sanic) in exchange for shares.

This will increase Sabic’s share holding in Safco to 50.1 per cent.
Sabic formed Sanic in 2018 to consolidate all its equity shares and assets currently held in several companies producing agri-nutrient products.
Yousef Al-Benyan, vice chairman and CEO, commented: “’The agreement, which is binding and subject to regulatory approvals, comes as a result of a shared vision to improve efficiencies through realization of synergies and maintaining a competitive edge in global markets. It is an important step in the journey toward meeting 2025 strategic targets, and is expected to accelerate Agri-Nutrients growth strategy, while increasing efficiency and maintaining customer intimacy.’’
Samir Al-Abdrabbuh, executive vice president, Agri-Nutrients, said: ‘’Subject agreement aims to boost shareholder value by enhancing capabilities, making breakthrough technological advances, and exploring growth opportunities through Sabic’s wide reach across global markets.’’
Sanic owns 50 per cent shares of both the National Chemical Fertilizers Company (Ibn Al-Baytar) and Jubail Fertilizer Company (Al-Bayroni), and 33.33 per cent shares of Gulf Petrochemical Industries Company (GPIC). – TradeArabia News Service


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