Guess who wants Sidpec-Ethydco? Gulf investors are already lining up to get a piece of the planned merger between EGX-listed Sidi Kerir Petrochemicals (Sidpec) and Egyptian Ethylene and Derivatives Company (Ethydco), sources in the know reportedly told Al Mal. The unidentified investors are reportedly looking to acquire between 16-20% of the new company, a number that could go up or down after the merger wraps up. The companies have not yet received any official bids, the sources said.

Where does the merger currently stand? The two companies are currently working on fulfilling the requests of their financial and legal advisors, Sidpec said in an EGX disclosure (pdf) last week.

Remember: Last year Sidpec expressed interest in fully acquiring Ethydco through a share swap, with the company’s chairman, Mohamed Ibrahim, signaling that the acquisition would wrap up in less than a year. Sidpec currently owns 20% of Ethydco, making it the company’s second-largest shareholder.

Ethydco is in the state’s privatization plans: The chemicals firm is among the 32 state-owned companies that the government is looking to part-privatize over the coming 13 months. The government has not mentioned Sidpec as being in line for privatization though an unconfirmed press report claimed it could look to offer a secondary stake to investors.

Our Khaleeji friends are buying big into Egyptian petchems: Saudi and Emirati sovereign wealth funds have together acquired significant minority stakes in two of the country’s largest fertilizer companies — Abu Qir Fertilizers and Misr Fertilizers Production Company (Mopco) — and are now reportedly after stakes in Helwan Fertilizers Company. Undisclosed Gulf funds are also looking to acquire shares in El Nasr for Fertilizers and Chemical Industries (Semadco).