PTTGC and SCGC Press Ahead with Joint Venture Study, Deal Expected to Conclude by October 2026

Thunhoon··TH·Read original
3▲1 ▼0Impact / 5
Summary · why it matters

PTT Global Chemical Public Company Limited, or PTTGC, informed the Stock Exchange of Thailand that its study of the strategic feasibility of a joint venture with SCG Chemicals Public Company Limited, or SCGC, is progressing according to plan. Both companies are in the phase of confirmatory due diligence and are negotiating the key terms of the transaction. The scope of the joint venture covers PTTGC's olefins and polyolefins businesses in Thailand, including its olefins production plant, its polyethylene (PE) production plant, and its investment in HMC Polymers Company Limited, as well as SCGC's olefins and polyolefins businesses in Thailand, including its olefins production plant, its polyethylene (PE) production plant, and its polypropylene (PP) production plant, together with SCGC's investments in joint ventures, namely Siam Polyethylene Company Limited, Siam Synthetic Latex Company Limited, Thai MMA Company Limited, and Bangkok Synthetics Company Limited. Under the structure being considered, the newly established joint venture company will become the shareholder in these joint ventures in place of PTTGC and SCGC. PTTGC will be the major shareholder of the joint venture, while SCGC will continue to hold a significant stake. Both companies expect to finalise the key details of the transaction, including the shareholding structure, the transaction process, and the value of the expected synergies, by October 2026, before submitting an application for approval to the Trade Competition Commission. The project remains subject to the internal approvals of both companies, shareholder approval, approval from the relevant joint venture partners, and the necessary approvals from the relevant regulatory authorities.

Impact on assets 1

Materials▲ · 1 stocks

Off-coverage companies 6

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

SCGC progresses its JV study with PTTGC, contributing its olefins, PE and PP businesses and JV stakes while retaining a significant stake.

Bangkok Synthetics Co., Ltd.Private± Mixed
relevance

HMC PolymersPrivate± Mixed
relevance

Siam Polyethylene Co., Ltd.Private± Mixed
relevance

Siam Synthetic Latex Co., Ltd.Private± Mixed
relevance

Thai MMA Co., Ltd.Private± Mixed
relevance

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