Stock analysts are bullish after the Trade Competition Commission of Thailand (TCCT) gave its approval to the Bangchak and Esso merger, with the completion of the deal anticipated for the second half of the year; maintaining a “Buy” rating on BCP’s share with a price target of THB36.0.
TCCT on Monday approved the proposed merger of petroleum companies Bangchak Corporation Pcl. (SET: BCP) and Esso (Thailand) Pcl. (SET: ESSO).
According to a source, the merger was allowed on the condition that it would not disrupt Esso’s current relationships with its trading partners.
BCP announced in January that its board of directors had approved the purchase of a 65.99% share in Esso Thailand from ExxonMobil Asia Holdings Pte for a total consideration of THB55 billion. The transaction is anticipated to be completed in the second half of 2023.
KGI Securities stated that it is optimistic about the recent approval by TCCT. Both BCP and ESSO remain “Buy” recommended stocks, with THB36.0 and THB9.50 as respective price targets.