Saudi Arabia: Plans to create chemical behemoth put on hold

Merger plans of two Saudi Arabian companies that would have resulted in the creation of a chemical firm with about $5.8 billion in market value have been put on hold, according to reports.

Shares for Saudi International Petrochemical and Sahara Petrochemicals sunk after the firms decided to delay their plans; in a statement, the companies said they could not agree on the structure of the transaction, adding that current regulations would make it difficult for the transaction to proceed.

The news was a blow to the Saudi Arabia market, which has seen an 83 percent decline in merger and acquisition activity this year, according to Bloomberg data. The two companies first announced last December plans for a share-swap deal.

Full content: Businessweek

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