Methanol Chemicals Co. (Chemanol) signed a share purchase agreement (SPA) with the shareholders of ADDAR Chemicals Co. (ACC) to acquire an 84% stake in the latter for a SAR 46.2 million cash consideration, to be disbursed partially and within specified intervals, as per the terms stipulated in the SPA.

Through this acquisition, Chemanol aims to expand its share in the specialty chemicals market and diversify its product basket in line with its strategic and expansion plans.

“This acquisition will enhance the company's business and products that are not affected by feedstock price fluctuations and the economic cycles of the petrochemical market. It will also contribute to reducing production costs in the acquired company through the integration of its services with Chemanol’s, in addition to providing the acquired company with certain materials required for its production processes, and similarly, some of the acquired company's products are used in Chemanol's production processes,” Chemanol said to Saudi Stock Exchange.

The anticipated completion date for this transaction is March 31, 2024.