DBS Vickers Securities said PTTGC and SCC notified the Stock Exchange of Thailand of progress in their feasibility study for a business cooperation project in the olefins and polyolefins business in Thailand. Discussions between SCG Chemicals Public Company Limited, a subsidiary of SCC, and PTTGC on forming a strategic joint venture have progressed well and have entered the due diligence stage to confirm information, and the two sides are in the process of agreeing on key transaction terms. The two companies have agreed on the scope of the joint venture, covering the olefins and polyolefins businesses, namely PTTGC's olefins and polyethylene production plants and its investment in HMC Polymers Company Limited, and SCGC's olefins, polyethylene and polypropylene production plants and its investments in joint ventures, namely Siam Polyethylene Company Limited, Siam Synthetic Latex Company Limited, Thai MMA Company Limited and Bangkok Synthetics Company Limited. Both companies expect to conclude the material terms of the transaction, including the shareholding structure, transaction procedures and the estimated value of synergies, by October 2026, after which they will submit a permit application to the Trade Competition Commission. The implementation of the joint venture project is subject to the internal approvals of both companies, the approval of shareholders in the relevant joint ventures, and approvals from relevant regulatory authorities. DBS Vickers has a neutral view on this news, believing that both companies are entering the final stage of negotiations, but it is unable to assess the impact of this potential deal on earnings due to insufficient information. It gives a Hold recommendation on PTTGC with a target price of 46.00 baht and a Buy recommendation on SCC with a target price of 290.00 baht.
PTT Global Chemical Public Company LimitedPTTGC and SCC advance feasibility study for an olefins-polyolefins joint venture into due diligence, with terms expected by October 2026; DBS sees neutral impact and cannot assess earnings effect.
The Siam Cement Public Company LimitedSCC's subsidiary SCGC progresses toward a strategic JV with PTTGC in olefins/polyolefins, entering due diligence; DBS holds a Buy but says the deal's earnings impact is unassessable.
