SAFCO eyes SABIC stake in Ibn Al-Baytar fertilizer unit

Saudi Arabian Fertilizer Co. (SAFCO), one of the world’s largest producers of ammonia and urea, will carry out a feasibility study to buy Saudi Basic Industries Corp.’s (SABIC) 50 percent stake in National Chemical Fertilizer Co. (Ibn Al-Baytar).

Both Saudi companies said the potential merge will help them study new investment opportunities and fulfill strategic goals, with no negative impact on financial positions or business activities.

Ibn Al-Baytar, which is equally owned by SABIC and SAFCO, was launched in 1985 with SAR 494.7 million in capital.

SABIC owns 42.99 percent of SAFCO, and the General Organization for Social Insurance (GOSI) owns 12.20 percent.