Bualuang Securities retained its “Buy” recommendations on PTT Global Chemical Public Company Limited (SET: PTTGC) and The Siam Cement Public Company Limited (SET: SCC), taking a positive view of their joint venture progression. The brokerage stated that the joint company conference call indicated progress, with due diligence and negotiations over key terms underway.
The planned asset pool covers the Thai olefins and polyolefins businesses of PTTGC and SCGC, including polyethylene (PE) and polypropylene (PP). HMC Polymers from PTTGC and four SCGC joint ventures would also fall within its scope.
Under the proposed ownership arrangement, PTTGC would hold the largest stake, while SCGC would have a substantial shareholding.
Full details of the venture are due to be disclosed by October this year.
Yesterday, PTTGC and SCG Chemicals Public Company Limited (SCGC) officially announced an update on their proposed petrochemical joint venture to the confirmatory due diligence phase, with key transaction parameters expected to be finalized by October 2026.
The companies said the study was progressing according to plan. Discussions are continuing on transaction terms alongside further assessment and quantification of the synergies expected from combining their strengths, capabilities and assets.
The potential venture aims to establish a leading regional petrochemical player and strengthen Thailand’s competitive position. Expected benefits include greater operating scale, a more integrated supply chain, improved feedstock management and stronger downstream capabilities, with increased emphasis on high-value-added and differentiated products.
The scope under consideration includes PTTGC’s olefins and polyolefins businesses in Thailand, together with its shares in HMC Polymers Co., Ltd.
It also encompasses SCGC’s Thai olefins and polyolefins businesses, including olefins crackers and PE and polypropylene PP production facilities. SCGC’s stakes in Siam Polyethylene Co., Ltd., Siam Synthetic Latex Co., Ltd., Thai MMA Co., Ltd., and Bangkok Synthetics Co., Ltd. are also included in the study.
Upon establishment, the proposed venture is expected to hold the shares in those joint venture companies currently owned by PTTGC and SCGC.
Under the framework being considered, PTTGC is expected to become a major shareholder, while SCGC would remain a significant shareholder. The companies aim to finalize the shareholding structure, transaction steps and quantified synergies by October 2026.
Confirmatory due diligence will allow both parties to validate key information supporting the transaction structure and terms, while comprehensively assessing the venture’s anticipated benefits. The companies will subsequently submit a filing to the Trade Competition Commission of Thailand for the required approval.
The transaction remains subject to both companies’ internal approvals and necessary regulatory approvals.
PTTGC and SCGC said the collaboration is intended to improve supply-chain efficiency and reinforce the competitiveness of Thailand’s petrochemical industry. It also seeks to strengthen customers, business partners and related industries while supporting sustainable competitiveness in regional and global markets.
