Summary · why it matters
Shares of PTTGC and SCC rose after the latest progress in their petrochemical merger deal. As of 10:02 a.m., PTTGC was up 2.58%, gaining 1.25 baht to 49.75 baht, with trading value of 238.14 million baht, while SCC was up 1.18%, gaining 3.00 baht to 257.00 baht, with trading value of 187.38 million baht. InnovestX Securities said in an analysis that PTT Global Chemical, or PTTGC, and SCG Chemicals, or SCGC, a wholly owned subsidiary of Siam Cement, or SCC, are pressing ahead with the confirmatory due diligence process alongside negotiations on key transaction terms for the establishment of a joint venture in Thailand. The transaction covers the two companies' main petrochemical assets in Thailand, centered on the Map Ta Phut Industrial Estate. PTTGC is expected to be the major shareholder in the new JV, while SCGC will hold a significant minority stake. Both parties have already defined the scope of assets. On the PTTGC side, this covers the olefins and polyolefins businesses in Thailand, namely olefins production plants, polyethylene production plants, and the investment in HMC Polymers, while the refinery business, aromatics business, biochemical business, and specialty chemicals business, mainly allnex, will remain under PTTGC. For SCGC, the scope comprises olefins production plants, polyethylene production plants, and polypropylene production plants, as well as 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. However, some of SCGC's joint ventures and SCC's Long Son Petrochemical, or LSP, plant are not included in this transaction. Both parties are assessing opportunities to create synergies and preparing to seek approval from the relevant joint venture partners. The disclosure of further details in October 2026 will help the market more accurately assess the positive impact on earnings, the effect on financial position, and the upside to the share value of both parent companies. Key information to be disclosed includes the final shareholding proportions between PTTGC and SCGC, the synergy assessment, the asset valuation method, and the accounting treatment and consolidation mechanism. The merger and full operational integration are expected around mid-2027 after receiving approval from the relevant regulators and shareholders. The transaction requires approval from the Trade Competition Commission, and the review process is expected to take about three to six months. However, management does not view obtaining trade competition approval as a significant obstacle to proceeding with the transaction, since petrochemical products are commodities traded in the global market and priced according to international market mechanisms, while the main purpose of setting up the JV is to improve operational efficiency rather than to control domestic prices. InnovestX Securities maintained its recommendation and target price, giving PTTGC a target price of 63 baht and maintaining a NEUTRAL recommendation on SCC with a target price of 276 baht.
PTT Global Chemical Public Company Limited
The Siam Cement Public Company Limited