Following a major deal in Thailand's petrochemical industry, The Siam Cement Public Company Limited (SCC) and PTT Global Chemical Public Company Limited (PTTGC) within the PTT group are preparing to propose to shareholders the merger of olefins and polyolefins businesses in Thailand between SCG Chemicals (SCGC) and PTTGC.
They aim for synergy benefits from this business consolidation of $150–200 million annually, equivalent to about 5.1–6.8 billion baht, once the merger's full potential is realized.
Both companies announced their boards' resolutions to the Stock Exchange of Thailand on 28 Oct 2026, scheduling an extraordinary general meeting of shareholders at 09:00 hrs on 3 Dec 2026 to consider the transaction.
If approved and conditions met, the business restructuring is expected to complete in the first half of 2027, with the business merger finishing in the second half of the same year.
SCC informed the Stock Exchange of Thailand that this merger will be conducted through a consolidation of SCGC’s and PTTGC’s subsidiaries. Both companies will restructure their businesses beforehand to limit the merged operations to olefins and polyolefins businesses in Thailand within the scope of the transaction.
SCGC will internally restructure by separating assets outside the transaction scope from Thai Polyethylene Company Limited (TPE) and Rayong Olefins Company Limited (ROC). This includes adjusting shareholdings in subsidiaries and affiliates and transferring shares in related companies to TPE.
PTTGC will transfer its olefins and polyolefins businesses in Thailand within the transaction scope to a newly established subsidiary named GC SPV.
After both parties complete restructuring, TPE will merge with GC SPV under Section 1238(2) of the Civil and Commercial Code, with GC SPV remaining as the surviving legal entity.
TPE will dissolve, and GC SPV will assume all assets, liabilities, rights, duties, and obligations of TPE by law.
The merger aims to create a leading petrochemical operator in the region and strengthen Thailand's competitiveness in the global petrochemical industry by combining SCGC’s downstream production capabilities, diverse products, proprietary technology, and expertise in high-value products with PTTGC’s upstream production strengths, feedstock access linked to refining, and integrated infrastructure.
The companies state the transaction will enhance operational efficiency, improve production through joint planning and more efficient raw material allocation, and better utilize existing plants, infrastructure, and utilities.
It also aims to increase cost competitiveness through economies of scale, supply chain management, joint maintenance planning, procurement efficiencies, and reduce redundant future investments.
According to joint assessments by SCGC and PTTGC, the transaction is expected to generate synergy and integration benefits exceeding 5.1–6.8 billion baht, or $150–200 million annually, once fully leveraged post-completion.
Most benefits are anticipated from operational, commercial, and organizational improvements by utilizing existing assets without significant additional capital expenditures.
The companies note actual benefits and timing may vary depending on planning, operational progress, market conditions, and operational circumstances at the time.
Regarding the transaction timeline, SCC states both parties' restructuring depends on fulfilling related conditions, including approvals or confirmations from competition regulators, shareholder approvals from PTTGC and SCGC, and consents or waivers from counterparties under relevant contracts.
After restructuring completes, the merger of TPE and GC SPV must also satisfy mandatory conditions specified by counterparties in contracts.
The companies expect all restructuring conditions to be fulfilled and restructuring completed within the first half of 2027, with the merger finalized in the latter half of 2027.
SCC has scheduled an extraordinary general meeting 1/2569 on 3 Dec 2026 to approve SCGC's participation in merging olefins and polyolefins businesses in Thailand.
The meeting will also authorize the board and designated persons to undertake related actions concerning the transaction.
PTTGC will similarly seek shareholder approval for establishing a joint venture in the same business during the same meeting.
This is another major deal to watch from two leading Thai groups, PTT and SCG, as stakeholders await shareholder and regulatory approvals before formally proceeding with the merger in 2027.
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