SCGC and PTTGC set to finalise petrochemical JV deal by October 2026

Kaohoon··TH·Read original
3▲2 ▼0Impact / 5
Summary · why it matters

SCG Chemicals, or SCGC, a subsidiary of Siam Cement, or SCC, and PTT Global Chemical, or PTTGC, reported progress on the establishment of their petrochemical joint venture, or JV, saying it is proceeding according to plan and has entered the confirmatory due diligence stage to verify information. The two sides are also negotiating the key terms of the transaction. The preliminary structure is becoming clearer, with PTTGC to be the major shareholder of the JV while SCGC will hold a significant stake, with the shareholding proportions to be determined by the value of the assets each side contributes to the joint venture. On asset scope, the SCGC side comprises olefins production plants, polyethylene, or PE, plants, polypropylene, or PP, plants, as well as investments in joint ventures including Siam Polyethylene, Siam Synthetic Latex, Thai MMA and Bangkok Synthetics. The PTTGC side covers olefins production plants, PE plants and its investment in HMC Polymers. Neither side has disclosed the expected synergy value from the business combination, and both will accelerate finalisation of the transaction's key elements, including the shareholding structure, the transaction process and the synergy value, with clarity expected by October 2026, before entering the approval process with the shareholders of both parties, the relevant regulators, the Trade Competition Commission and the shareholders of the related joint ventures. Land and Houses Securities estimates that the approval process with the Trade Competition Commission could take about six months. Land and Houses Securities views the matter as positive for both SCC and PTTGC, noting that since the start of the year SCC's share price has risen about 45% compared with a gain of about 132% for PTTGC, and it maintains a buy recommendation on both stocks.

Impact on assets 2

Materials▲
Climate Adaptation & Water▲

Off-coverage companies 7

SCG Chemicals Public Company Limited (SCGC)i
Private▲ PositiveCapitalrelevance

SCGC is finalising the petrochemical JV with PTTGC, contributing olefins, PE, PP plants and JV stakes, with clarity expected by October 2026.

Bangkok Synthetics Co., Ltd.i
Private± Mixedrelevance

HMC Polymersi
Private± Mixedrelevance

Land and Houses Securities Public Company Limitedi
Private± Mixedrelevance

Siam Polyethylene Co., Ltd.i
Private± Mixedrelevance

Siam Synthetic Latex Co., Ltd.i
Private± Mixedrelevance

Thai MMA Co., Ltd.i
Private± Mixedrelevance