Kuwait's Boubyan Petrochemical Company has reached an initial agreement with Educational Holding Group to enter into a merger deal.

Boubyan will be the merging company, it said in a filing on Boursa Kuwait where it is listed.

Boubyan already owns 82.7 percent of the educational firm.

During the first quarter of 2017 Boubyan acquired a 53 percent stake in Educational Holding for $129 million. It later increased its stake by 25 percent through a mandatory tender offer (MTO) during Q4 2017 for $63 million.

(Reporting by Brinda Darasha; editing by Daniel Luiz)