Chemanol signs binding bids to acquire stakes in 2 firms

Logo of Methanol Chemicals Co. (Chemanol)

Methanol Chemicals Co. (Chemanol) announced signing two binding offers, on June 18, to acquire 84% of ADDAR Chemicals Co. (ACC) and 80% of Global Co. for Chemical Industries Ltd. (GCI), according to two separate statements to Tadawul.

Under the two binding offers, which will extend for six months from the signing date, the parties agree to determine the final consideration for both deals upon the fulfillment of a number of performance indicators.

The final deals will be determined after the legal and financial due diligence, talks with creditors and debtors, in addition to other terms that would warrant a positive impact on the company upon finalizing the deals.

The acquisition of ACC's stake seeks to boost the product portfolio and fulfill the reverse integration, in line with expansion and strategic plans, as the company produces chemical substances used as feedstock for its current and future products.

Meanwhile, the other takeover deal aims to boost the products and fulfill the backward integration, aligning with the company’s strategic and expansion plans. The transaction will also contribute to strengthening the company's business operations, not impacted by feedstock prices and the economic cycles of the petrochemicals market.

The deals are subject to the approvals of the regulatory authorities, including the General Authority for Competition (GAC).

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