Merger Talks between 2 Saudi Petrochemical Firms Resume after 10 Years

Part of the Saudi Petrochem projects that are engaged in merger talks with the Saudi Industrial Investment Group. Asharq Al-Awsat
Part of the Saudi Petrochem projects that are engaged in merger talks with the Saudi Industrial Investment Group. Asharq Al-Awsat
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Merger Talks between 2 Saudi Petrochemical Firms Resume after 10 Years

Part of the Saudi Petrochem projects that are engaged in merger talks with the Saudi Industrial Investment Group. Asharq Al-Awsat
Part of the Saudi Petrochem projects that are engaged in merger talks with the Saudi Industrial Investment Group. Asharq Al-Awsat

Talks to merge two Saudi petrochemical companies, which had been frozen for nearly 10 years, have resumed.

Saudi Industrial Investment Group (SIIG) and the National Petrochemical Company (Petrochem) announced Sunday that they have begun talks over a potential merger.

The SIIG and Petrochem boards have approved initial discussions to study the feasibility of a merger but no agreement has been reached on any final structure of a merged entity, the companies said in separate statements.

They pointed out that if a deal is reached, it will be subject to the conditions and approvals of competent authorities, as well as the extraordinary general assembly of both companies.

SIIG owns 50 percent of Petrochem, but the two firms are similar in size, suggesting a deal would be a merger of near equals.

The two companies previously held merger discussions in 2011, with the talks eventually postponed to allow Petrochem’s facility at Jubail to reach production capacity and provide better valuations of the companies, SIIG said back then.

The Riyadh-based Petrochem has paid-up capital of SAR4.8bn riyals. It owns 65 percent of the Saudi Polymer Co, which permanently closed down its polystyrene (PS) manufacturing plant at the Jubail petchems complex in July and produced petrochemical products.

Arabian Chevron Phillips Petrochemical Co., wholly owned by CPChem, owns the remainder of Saudi Polymers Co.



Colombia Joins Belt and Road Initiative as China Courts Latin America 

Chinese President Xi Jinping meets with Colombian President Gustavo Petro at the Great Hall of the People in Beijing, China, 14 May 2025. (EPA /Xinhua / Huang Jingwen)
Chinese President Xi Jinping meets with Colombian President Gustavo Petro at the Great Hall of the People in Beijing, China, 14 May 2025. (EPA /Xinhua / Huang Jingwen)
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Colombia Joins Belt and Road Initiative as China Courts Latin America 

Chinese President Xi Jinping meets with Colombian President Gustavo Petro at the Great Hall of the People in Beijing, China, 14 May 2025. (EPA /Xinhua / Huang Jingwen)
Chinese President Xi Jinping meets with Colombian President Gustavo Petro at the Great Hall of the People in Beijing, China, 14 May 2025. (EPA /Xinhua / Huang Jingwen)

Colombia formally agreed on Wednesday to join China's vast Belt and Road infrastructure initiative, as Beijing draws Latin America closer in a bid to counter the United States.

Latin America has emerged as a key battleground in US President Donald Trump's confrontations with China, and the region is coming under pressure from Washington to choose a side.

China has surpassed the United States as the biggest trading partner of Brazil, Peru, Chile and other Latin American nations, and two-thirds of countries there have signed up to Chinese leader Xi Jinping's Belt and Road infrastructure drive.

On the sidelines of a major gathering of regional leaders in Beijing on Wednesday, Colombia became the latest country to join the massive global initiative.

Colombia's foreign ministry hailed the agreement as a "historic step that opens up new opportunities for investment, technological cooperation, and sustainable development for both countries".

And after a meeting with Colombian President Gustavo Petro, Xi urged the countries to take the opportunity of Colombia formally joining the "Belt and Road Initiative family" to enhance their cooperation, Beijing's state media said.

Posting a video of the signing to social media platform X, Petro wrote that "the history of our foreign relations is changing".

"From now on, Colombia will interact with the entire world on a footing of equality and freedom," he wrote.

The BRI is a central pillar of Xi's bid to expand China's economic and political clout overseas.

For more than a decade, it has provided investment for infrastructure and other large-scale projects around the world, offering Beijing political and economic leverage in return.

Last year, Xi inaugurated Latin America's first Beijing-funded port in Chancay, Peru -- a symbol of the Asian superpower's growing influence on the continent.

- 'Defenders of free trade' -

This week's China-CELAC Forum in Beijing has seen China cast itself as the defender of the multilateral order and the backer of the Global South, with Xi pledging on Monday $9.2 billion in credit towards development.

That pledge was part of a broad set of initiatives aimed at deepening cooperation, including on infrastructure and clean energy.

Beijing will also cooperate in counterterrorism and fighting transnational organized crime, Xi said, as well as enhancing exchanges such as scholarships and training programs.

During a meeting with Chilean President Gabriel Boric on Wednesday, Xi said that the "resurgence of unilateralism and protectionism is severely impacting the international economic and trade order," according to Chinese state news agency Xinhua.

"As staunch defenders of multilateralism and free trade, China and Chile should strengthen multilateral coordination and jointly safeguard the common interests of the Global South," Xi told Boric.

Also in attendance at the China-CELAC forum was Brazilian President Luiz Inacio Lula da Silva, who arrived in Beijing on Saturday for a five-day state visit.

Addressing delegates, Lula said his region did not "want to repeat history and start a new Cold War", adding: "Our goal is to be an asset to the multilateral order for a global good".

In talks with Lula on Tuesday, Xi said the two countries should "strengthen cooperation" and together "oppose unilateralism", according to Chinese state media.

The United States and China have faced off in Latin America, including over the Panama Canal, which Trump has for months vowed to reclaim from alleged Chinese influence.

Washington considered a Hong Kong company's operation of ports at both ends of the interoceanic waterway to be a threat to its national security, but Beijing has dismissed the claims.

And China's market regulator is looking into a deal by Hong Kong conglomerate CK Hutchison to offload 43 ports in 23 countries -- including its two on the Panama Canal -- to a US-led consortium.

The world's two largest economies are two of the top users of the canal, through which five percent of all global shipping passes.