Chemanol Acquires Stakes in Saudi Chemical Companies
Methanol Chemicals – known as Chemanol – a Saudi Arabian producer of methanol and derivatives, has signed agreements to acquire controlling stakes in two compatriot chemical companies.
According to filings submitted to the Saudi Stock Exchange (Tadawul) on Jun. 19, Chemanol has made binding offers to take 80% of Global Company for Chemical Industries (GCI) and 84% of Addar Chemicals. Financial details have not been disclosed, and the transactions are subject to regulatory approvals and the usual closing conditions.
Chemanol’s deal with GCI follows an agreement that the two companies signed last October to produce specialty chemicals.
The acquisitions, said Chemanol, are in line with its strategic and expansion plans, enabling it to increase its product portfolio and achieve backward integration. Furthermore, they will reduce Chemanol’s vulnerability to fluctuating feedstock prices and economic cycles in the petrochemical market.
Author: Elaine Burridge, Freelance Journalist
