Saudi Arabian Fertilizer Company (SAFCO) and Saudi Basic Industries Corp (SABIC) have each hired investment banks to advise on the sale of SABIC’s stake in their fertilizer joint venture, Ibn Al-Baytar. In separate statements to the stock market, SAFCO said it has hired Samba Capital, and SABIC said it has selected HSBC’s Saudi Arabian affiliate. SAFCO revealed in a statement in March that it was considering taking full control of the 50:50 jv with a possible sale part of SABIC’s review of its investments. SABIC also owns 43% in SAFCO.

Both Saudi companies said there is no definitive sale agreement as yet, adding that a study examining the economic feasibility of such a deal is due to be finalized in the first quarter of 2017. Established in 1985 with production starting two years later, Ibn Al-Baytar produces ammonia, urea, compound and liquid fertilizers and phosphate.