Sipchem shortlists HSBC as adviser for Sahara merger

19-Jun-13

Saudi International Petrochemical Co (Sipchem) has picked HSBC Holdings to advise on the firm's proposed merger with Sahara Petrochemical, as per bankers in Reuters. Sahara has yet to select an adviser while Sipchem has chosen HSBC, which has advised the firm on projects in the past, two of the bankers said. Mergers between two listed Saudi entities are rare: consolidation in the Gulf is often scuppered by major shareholders who are unwilling to cede control of businesses except for very high price tags. However, both Sipchem and Sahara have Zamil Holding Company Group, one of the kingdom's most prominent family businesses, as a key stakeholder. The two companies had said earlier this month that they were in initial talks for a tie-up.