According to an article on Bloomberg, Saudi International Petrochemical Company (Sipchem) [2310.SE] and Sahara Petrochemical Company (Sahara) [2260.SE] have held early talks on reviving the proposed merger between both entities, which had fallen through during 2014. No agreement has been reached and a deal may not occur, according to people familiar with the talks. The companies had announced back in 2014 that the deal was put on hold due to difficulties in finding an acceptable structure for both companies. The market is likely to react positively to a merger proposal, as was the case in the past. Our view is that both companies are likely to benefit from a merger, mostly from cost savings from a marketing, logistical and administration perspective, but the talks remain in very early stages, and it is not yet clear if they will continue to move forward. (Bloomberg, Yousef Husseini)   SIPCHEM: SAR14.54 as of 12 May 2016, Rating: Neutral, FV: SAR14.00 per share, MCap: USD1,422 million, SIPCHEM AB / 2310.SE