Home / Knowledge / News / Textiles / Sipchem & Sahara postpone proposed merger
Sipchem & Sahara postpone proposed merger
Jun '14
Further to the announcement made by the Company on 4 December 2013 regarding the entry into a memorandum of understanding with Sahara (the MOU) to begin confirmatory due diligence and continue the non-binding negotiations relating to the detailed terms of a proposed business merger between the two companies based on the principles of a merger of equals (the Proposed Merger).
Both companies made positive progress in the confirmatory due diligence process, which indicated that the Proposed Merger shall achieve a positive milestone for both the companies from economic, marketing and technical perspectives; which in turn benefits both the companies’ shareholders and employees. 
Although both companies are still convinced that the Proposed Merger is in the interest of their shareholders, the companies reached a conclusion that it is difficult to implement this merger under the current regulatory framework using a structure acceptable to both companies where both companies will continue to exist whilst achieving operational integration. 
The Company and Sahara have therefore decided to postpone commercial negotiations related to the Proposed Merger and to postpone the entry into the Proposed Merger for the time being. As such, both companies will stop the exchange of information taking place as part of the commercial negotiations. Consequently, the companies, unlike what was announced earlier, will not sign a merger agreement during the first half of this year (2014).
The companies, to the benefit of their shareholders, might agree on a structure different from the structure agreed upon in the MOU in the future, and they will inform the market in this regard of any developments that they are required to disclose under the law.
Finally, although the companies may revisit the possibility of reviving the commercial negotiations and the exchange of information in the future, at this stage they have agreed to pursue their business and strategic objectives independently of each other and without liaising with each other. This decision is not expected to impact the operations of the two companies.


Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search