Competition Authority issues non-objection on AGIC, SK Gas economic concentration

Saudi Arabia’s General Authority for Competition (GAC) issued a non-objection to the economic concentration process between Advanced Global Investment Co. (AGIC), a subsidiary of Advanced Petrochemical Co., and SK Gas Co. Ltd.

The authority said on its official Twitter account that the move aims to establish a joint venture between the two companies for the purpose of building and operating two propane and polypropylene processing plants.

According to data compiled by Argaam, in March this year, Advanced Petrochemical signed a partnership agreement with SK Gas to establish and operate propane dehydrogenation (PDH) and polypropylene (PP) complex in Jubail Industrial City worth SAR 6.75 billion.

In October, Advanced Petrochemical announced amending the partnership agreement between its subsidiary AGIC and SK Gas Petrochemical Pte. Ltd. (SKGP), a unit of SK Gas Co, by adding an isopropanol (IPA) plant with an estimated cost of SAR 300 million, bringing the total cost of the project to SAR 7.05 billion.