Saudi firms start talks to form $11bn chemicals maker

Saudi firms start talks to form $11bn chemicals maker

Saudi Industrial Investment Group and National Petrochemical Co. started talks to merge, potentially creating a firm with $11bn in assets as Middle Eastern energy companies assess their options in a lower oil-price environment.

The talks are at an initial stage, and no agreement has been reached, the companies said on Sunday.

Saudi Industrial owns 50 per cent of National Petrochemical. National Petrochemical's shares jumped as much as 9.6 per cent, rising to the highest level since 2014, valuing the company at almost SAR15bn ($4bn). Saudi Industrial was 4.9 per cent higher at 10.29am in Riyadh.

Their possible merger comes as energy companies in countries such as Saudi Arabia, Qatar and the United Arab Emirates restructure their operations to cope with a market that's under strain from lower demand amid the