PTT Global Chemical Public Company Limited (SET: PTTGC) and The Siam Cement Public Company Limited (SET: SCC) have announced via the Stock Exchange of Thailand (SET) a progress update on the potential strategic joint venture formation of olefins and polyolefins businesses in Thailand. The details are as follows:
PTTGC (the Company) stated that the discussions between the Company and SCG Chemicals Public Company Limited (SCGC) (collectively, the Companies) on the potential strategic formation of a joint venture (the Potential Joint Venture) have progressed well, and the Companies have now entered the confirmatory due diligence phase and are in discussion on key terms of the transaction.
The Companies have agreed on the scope of the Potential Joint Venture, comprising the Company’s olefins and polyolefins assets in Thailand, including crackers, polyethylene (PE) production facilities, and the investment in HMC Polymers Co., Ltd. and SCGC’s olefins and polyolefins assets in Thailand, including crackers, polyethylene (PE) and polypropylene (PP) production facilities, and SCGC’s investment in joint venture companies, including Siam Polyethylene Co., Ltd., Siam Synthetic Latex Co., Ltd., Thai MMA Co., Ltd., and Bangkok Synthetics Co., Ltd.
The Companies reaffirm that the objective of the Potential Joint Venture is to establish a leading petrochemical player in the region and strengthen Thailand’s competitive advantage by enhancing operational excellence through greater scale and integrated value chain, supported by an advantaged feedstock position and strengthened downstream capabilities in higher-value and differentiated products.
The principal synergy benefits are expected to arise from operational optimization in all areas. Under the transaction framework currently contemplated, the Company is expected to become a major shareholder of the Potential Joint Venture, while SCGC is expected to remain a significant shareholder of the Potential Joint Venture.
The Companies expect to finalize the key transaction parameters, including the shareholding structure, transaction steps, and quantified synergies expected to arise from the Potential Joint Venture within October 2026. The Companies will then submit the relevant filing application to the Trade Competition Commission of Thailand (TCCT) for the relevant approval.
The Potential Joint Venture remains subject to the internal approvals of the Companies, approval of the shareholder, approvals of the relevant joint venture partners, if applicable, and the necessary approvals from relevant regulatory authorities.
