PTTGC and SCGC Join Forces to Form Olefins Joint Venture, Deal Expected to Be Finalized in October 2026

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Summary · why it matters

PTT Global Chemical, or PTTGC, and SCG Chemicals, or SCGC, announced progress on their study to establish a joint venture project, saying it is proceeding according to plan. The two companies are in the process of confirmatory due diligence to verify information, as well as discussing the key terms of the transaction and assessing the expected mutual benefits from combining the strengths, potential, and assets of both parties. The scope of the joint venture under study covers PTTGC's olefins and polyolefins business in Thailand, including PTTGC's shares in the joint venture HMC Polymers Company Limited, and SCGC's olefins and polyolefins business in Thailand, which includes olefins production plants, polyethylene production plants, and polypropylene plants, as well as SCGC's shares in related joint ventures, namely Siam Polyethylene Company Limited, Siam Synthetic Latex Company Limited, Thai MMA Company Limited, and Bangkok Synthetics Company Limited. The newly established joint venture will become a shareholder in the aforementioned joint ventures in place of PTTGC and SCGC under the current framework of the transaction structure under consideration. PTTGC will be the major shareholder of the joint venture, while SCGC will hold a significant stake, and both companies expect to conclude the material terms of the transaction, including the shareholding structure, the transaction process, and the value of the expected mutual benefits, by October 2026. In addition, both companies will submit requests for permission to the Trade Competition Commission, or TCCT, to seek the relevant approvals. The implementation of the joint venture project will depend on the internal approvals of both companies and the relevant regulatory agencies.

Impact on assets 1

Materials▲ · 1 stocks

Off-coverage companies 6

SCG Chemicals Public Company Limited (SCGC)Private▲ Positive
Capitalrelevance

SCGC is contributing its Thai olefins and polyolefins assets into the new joint venture with PTTGC, a corporate transaction.

Bangkok Synthetics Co., Ltd.Private± Mixed
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HMC PolymersPrivate± Mixed
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Siam Polyethylene Co., Ltd.Private± Mixed
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Siam Synthetic Latex Co., Ltd.Private± Mixed
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Thai MMA Co., Ltd.Private± Mixed
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