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 two companies work toward finalising key transaction terms by October 2026.
The companies said the study is progressing as planned, with discussions continuing on the structure of the proposed deal and an assessment of the synergies that could be generated by combining their businesses, assets and capabilities.
The proposed joint venture would bring together major parts of GC’s and SCGC’s Thai olefins and polyolefins operations, creating a larger integrated platform spanning feedstock management, production and downstream businesses.
Under the scope currently being studied, GC would contribute its olefins and polyolefins businesses in Thailand, including its stake in HMC Polymers Co., Ltd. SCGC’s contribution would include its Thai olefins and polyolefins operations, including 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 said the combination is expected to generate efficiencies through greater scale and a more integrated supply chain, while improving feedstock management and expanding their ability to develop high-value-added and differentiated products.
The proposed structure would see GC become a major shareholder of the joint venture, with SCGC remaining a significant shareholder. The partners aim to finalise the key transaction parameters by October 2026, including the ownership structure, transaction steps and quantified synergies.
The confirmatory due diligence will be used to validate information needed to determine the final transaction structure and terms, while providing a more detailed assessment of the potential benefits of the combination.
Once the terms are sufficiently advanced, the companies plan to submit the relevant filing to Thailand’s Trade Competition Commission (TCCT) for regulatory approval.
The proposed transaction remains subject to internal approvals from both companies and the necessary clearances from relevant authorities.
If completed, the combination would mark a significant consolidation of two major players in Thailand’s petrochemical industry, with the companies targeting stronger supply-chain efficiency, broader downstream capabilities and improved competitiveness in regional and global markets.
GC and SCGC said the collaboration is also intended to strengthen the capabilities of customers, business partners and related industries in Thailand while supporting the long-term competitiveness of the country’s petrochemical sector.
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