DUBAI, Oct 10 (Reuters) - Two Saudi petrochemical giants have hired investment banks to advise on the potential sale of a stake in the Ibn Al-Baytar fertiliser company.
Saudi Arabia Fertilizers Co (SAFCO
) has hired Samba Capital
, while Saudi Basic Industries Corp
) has chosen HSBC's Saudi Arabian unit, the two companies said in separate bourse statements on Monday. SAFCO
is considering taking full control of chemical fertiliser producer Ibn Al-Baytar by buying out its joint venture partner SABIC
said in a bourse statement in March.
The two companies said on Monday there was no definitive sale agreement yet, and a study which will examine the economic feasibility of the transaction is due to be completed in the first quarter of 2017.
Ibn Al-Baytar is a 50/50 joint venture between SABIC
and SAFCO which produces ammonia, urea, compound fertiliser, phosphate, and liquid fertiliser, according to information on SABIC's website.
(Reporting by Hadeel Al Sayegh) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))