PTT Global Chemical and SCG Chemicals advance olefins and polyolefins JV talks
- GC and SCGC are in the confirmatory due diligence phase for the potential joint venture.
- Key transaction parameters—including shareholding structure, transaction steps and quantified synergies—are expected to be finalized by October 2026.
- Scope under study covers GC’s and SCGC’s olefins and polyolefins businesses in Thailand, including GC’s stake in HMC Polymers and SCGC’s stakes in Siam Polyethylene, Siam Synthetic Latex, Thai MMA and Bangkok Synthetics.
- The companies will submit a filing to the Trade Competition Commission of Thailand and the transaction remains subject to internal approvals and required regulatory consents.
Transaction status
GC and SCGC have entered the confirmatory due diligence phase and are continuing discussions to determine key transaction terms while assessing and quantifying expected synergies. The companies expect to finalise the key transaction parameters by October 2026.
Scope and ownership
The scope under study comprises GC’s olefins and polyolefins businesses in Thailand, including GC’s shares in HMC Polymers Co., Ltd., together with SCGC’s olefins crackers, polyethylene and polypropylene production facilities and SCGC’s shares in Siam Polyethylene Co., Ltd., Siam Synthetic Latex Co., Ltd., Thai MMA Co., Ltd., and Bangkok Synthetics Co., Ltd. Upon establishment, the potential joint venture is expected to hold those JV shares currently held by GC and SCGC. Under the contemplated framework GC is expected to be a major shareholder and SCGC a significant shareholder.
Next steps and approvals
Confirmatory due diligence will validate information to support the transaction structure and quantified benefits. The companies will submit the relevant filing application to the Trade Competition Commission of Thailand for approval, and the proceeding of the potential joint venture will remain subject to internal approvals of both companies and necessary regulatory consents. The joint venture is presented as a step to improve operational scale, feedstock management efficiency, downstream capabilities and the competitiveness of Thailand’s petrochemical industry.
Source: GC