The Sidpec-Ethydco merger hits a speed bump: The long-planned all-share merger of state-owned Egyptian Ethylene and Derivatives Company (Ethydco) and Sidi Kerir Petrochemicals (Sidpec) is reportedly back in the financial evaluation stage, Al Mal reports, citing sources it says are familiar with the matter.

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Refresher: In July 2023, Sidpec’s board of directors signed off on the company’s all-sharemerger with Ethydco after approving Baker Tilly’s valuations, which pegged Ethydco’s value at EGP 33.5 bn (around EGP 2,420.09 per share) and Sidpec’s at c.EGP 23.1 bn (around EGP 30.60 per share).

But Sidpec’s bid to take over Ethydco was put on ice when Abu Dhabi’s sovereign wealth fund ADQ inked contracts with the Sovereign Fund of Egypt to acquire 30% of Ethydco, along with 35% of Egyptian Linear Alkyl Benzene (Elab) and 25% of the Egyptian Drilling Company (EDC), for USD 800 mn in October. Now that ADQ’s acquisition of Ethydco has gone through, the merger is “on the verge of execution,” according to unnamed sources cited by Al Mal. ADQ should soon name its representatives to sit on Ethydco’s board of directors.

EGX listing will also be subject to revaluation: The source told the news outlet that the plan to offer a stake in the merged entity will also be reevaluated.

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