Sidi Kerir Petrochemicals (Sidpec) has announced that the company is exploring the full acquisition of the Egyptian Ethylene and Derivatives Company (Ethydco).

In an interview with CNBC, Mohamed Ibrahim, the Chairman of Sidpec, said that his company has appointed NI Capital as an advisor for the transaction noting that it will be completed within less than one year.

Ibrahim stated that this merger will potentially improve the performance of both companies as well as their revenues and it will enable them to form a strong entity that can compete in global markets.

The chairman added that this transaction can help increase the production of products at the same costs for both companies together which means reducing costs for each company.

He elaborated that the current market share of Sidpec is 25% to 35% and after the acquisition process the two companies together will be able to cover 50% of the local market’s needs.