BCI signs a letter of intent to acquire 49% of the UAE’s Union Chlorine

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Riyadh – Mubasher: Basic Chemical Industries Company announced “BCI”Ltd., listed on the Saudi Stock Exchange, announced that it had signed a non-binding letter of intent with the companies that own Union Chlorine (LLC) to acquire 49% of the ownership of that company, bearing in mind that Union Chlorine (LLC) is a manufacturer. For chlorine and alkali, based in the United Arab Emirates..

BCI said, in a statement on the Saudi Tadawul website today, Wednesday, that the memorandum was signed, for a period of 90 days, from the date of signing the memorandum on July 13, 2021, with Oman Chlorine Company (SAOG) and Horizon Energy. (LLC), MS Union Chlorine and the Oman Industrial Development Company.

The company added, that the purpose of the letter of intent is to facilitate discussions and reach a final agreement to acquire 49% of the ownership of Union Chlorine (LLC) for the benefit of the Basic Chemical Industries Company..

BCI noted that there is no financial impact on the company as a result of signing the non-binding letter of intent, but in the event that a binding agreement is signed for the parties, the Basic Chemical Industries Company will conduct the due diligence examination; To determine the financial impact that the acquisition will bring to it.

BCI explained that the deal aims to diversify the base of Basic Chemical Industries Company’s products and markets by adding the United Arab Emirates as a production market, and access to a wide export base of Union Chlorine (LLC)..), in addition to increasing the productivity of BCI’s core products such as caustic soda and hydrochloric acid, as well as adding a new product (calcium chloride) to BCI’s portfolio..

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