PTT Global Chemical (GC) and SCG Chemicals (SCGC) have moved into the confirmatory due diligence phase of a potential joint venture that could reshape Thailand’s petrochemical landscape, as the 2-companies work towards completing key transaction terms by October 2026.
The companies mention that the study is advancing as planned, with discussions persisting on the structure of the proposed deal and an assessment of the synergies that could be generated by integrating their businesses, assets and capabilities.
Under the scope recently being studied, GC would contribute its olefins and polyolefins businesses in Thailand, which include its stake in HMC Polymers Co., Ltd. SCGC’s contribution would include its Thai olefins and polyolefins operations, which includes olefins crackers and polyethylene (PE) and polypropylene (PP) facilities, as well as stakes in Siam Polyethylene Co., Ltd., Siam Synthetic Latex Co., Ltd., Thai MMA Co., Ltd. And Bangkok Synthetics Co., Ltd.
The companies stated the integration is anticipated to generate efficiencies by greater scale and a more incorporated supply chain, while improving feedstock management and broadening their ability to develop high-value-added and differentiated products.
The proposed structure would see GC become become a main shareholder of the joint venture, with SCGC staying a considerable shareholder. The partners goal to finalise the main transaction parameters by October 2026, including the ownership structure, transaction steps and quantified synergies.
The confirmatory due diligence can be used to validate information required to determine the final transaction ownership and terms, while offering a more detailed assessment of the potential advantages of the integration.
Once the terms are enough advanced, the companies plan to submit the appropriate filing to Thailand’s Trade Competition Commission (TCCT) for regulatory approval.
The proposed transaction stays subject to internal approvals from both companies and the vital clearances from relevant authorities.
If completed, the integration would mark a considerable consolidation of two major players in Thailand’s petrochemical industry, with the companies focusing more robust supply-chain efficiency, wider downstream capabilities and improved competitiveness in regional and global markets.
GC and SCGC mention that the collaboration is also targeted to reinforce the capabilities of clients, business partners and associated industries in Thailand while supporting the long-term competitiveness of the country’s petrochemical sector.
