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SABIC to Merge Its Two Fully-owned SADAF, PETROKEMYA

SABIC to Merge Its Two Fully-owned SADAF, PETROKEMYA
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SABIC to Merge Its Two Fully-owned SADAF, PETROKEMYA

SABIC to Merge Its Two Fully-owned SADAF, PETROKEMYA

Saudi Basic Industries Corporation (SABIC) intends to merge its two wholly-owned subsidiaries as part of a strategic transformation plan to increase efficiency and competiveness of its global operations.

SABIC announced on Wednesday its plan to merge Saudi Petrochemical Company (SADAF) and Arabian Petrochemical Company (PETROKEMYA).

All the assets, rights, liabilities and obligations of SADAF will be transferred to PETROKEMYA and it is expected that the merger will be completed during the second half of 2019.

"SABIC’s aim with this merger is to create a more efficient entity which will increase the optimisation of assets and unlock value from the synergies between the two companies’ product streams,” SABIC said.

SADAF will cease to exist as a legal entity as a result of merger.

SADAF operates a complex in Al Jubail, Saudi Arabia, which includes six petrochemical plants with a total production capacity of more than 4m tonnes/year.

PETROKEMYA's products include ethylene, propylene, butene, benzene, butadiene, polystyrene, polyethylene, polyvinyl chloride and acrylonitrile butadiene styrene.

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Gold Bolts Past Key $3,200 Mark on Dollar Slide, Safe-haven Flows

A gold bullion is displayed in The Reserve vault, operated by Silver Bullion Pte Ltd, in Singapore April 10, 2025. REUTERS/Edgar Su
A gold bullion is displayed in The Reserve vault, operated by Silver Bullion Pte Ltd, in Singapore April 10, 2025. REUTERS/Edgar Su
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Gold Bolts Past Key $3,200 Mark on Dollar Slide, Safe-haven Flows

A gold bullion is displayed in The Reserve vault, operated by Silver Bullion Pte Ltd, in Singapore April 10, 2025. REUTERS/Edgar Su
A gold bullion is displayed in The Reserve vault, operated by Silver Bullion Pte Ltd, in Singapore April 10, 2025. REUTERS/Edgar Su

Gold prices breached the crucial $3,200/oz level for the first time on Friday, fueled by a weaker dollar and an escalating trade war that sent investors rushing toward safe-haven assets.
Spot gold was up 0.6% at $3,192.79 an ounce, as of 0555 GMT. Bullion scaled an all-time peak of $3,219.84 earlier in the session, and has gained around 5% this week.
US gold futures climbed nearly 2% to $3,237.50, Reuters reported.
"The rapid weakening of the US dollar seems to be the main driver of gold's rebound at the moment. That seems to reflect an ongoing exodus from USD-based assets, with stocks and bonds' selloff amid tariff policy uncertainty," said Ilya Spivak, head of global macro at Tastylive.
The dollar was down nearly 1% against its major peers, making greenback-priced bullion cheaper for overseas buyers. Major stock indexes also fell after US President Donald Trump ratcheted up tariffs on Chinese imports to 145%, but hit a 90-day pause on previously announced tariffs for dozens of countries.
China has been matching Trump's tariff hikes, sparking fears that Beijing could push duties on the US beyond the current 84%.
"$3,500 is the next round number people will be looking at. I suspect we won't get there immediately or without bumps along the way," Capital.com's financial market analyst Kyle Rodda said.
Apart from tariffs, central bank demand, expectations of interest rate cuts by the Federal Reserve, geopolitical instability in the Middle East and Europe, and increased flows into gold-backed exchange-traded funds also fueled the metal's rally this year.
US consumer prices fell unexpectedly in March but inflation risks are tilted to the upside, data showed.
Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025.
Spot silver was steady at $31.2 an ounce, while platinum eased 0.2% to $936.55. Palladium gained 0.7% to $914.55.