RIYADH: Saudi-based Methanol Chemicals Co., also known as Chemanol, has struck deals to acquire controlling stakes in two chemical firms as part of a strategy to diversify its product basket.
Chemanol has announced the signing of a binding offer to acquire 80 percent of Global Co. for Chemical Industries Ltd., according to the company’s disclosure to the Saudi Stock Exchange, also known as Tadawul.
The firm also confirmed a plan to acquire 84 percent of ADDAR Chemicals Co.
The two new acquisitions will also help Chemanol expand its share in the specialty chemicals market in line with its strategic expansion plans.
The newly signed deals will also contribute to strengthening the aspect of the company’s business that is not affected by the price of feedstock and the economic cycles of the petrochemical market.
The price associated with the two deals is yet to be disclosed as a final evaluation will be determined based on the results of the financial and legal examination, the firm said.
The deal with Global Co. for Downstream Industries comes eight months after Chemanol signed a strategic agreement worth SR500 million ($133 million) with Global Co. for Chemical Industries — a company developed by the downstream-focused firm.
Chemanol recorded net profits after zakat and tax worth SR206.4 million in 2022, reflecting an annual decline of 15.4 percent from the SR244 million recorded in 2021.
The Saudi firm also posted revenues worth SR1.07 billion for 2022, higher by 6.66 percent year on year from the SR1 billion recorded in the previous year, according to the company’s annual income statements.
Chemanol is one of the world’s most integrated global producers of methanol and derivatives.
It is also one of the world’s largest formaldehyde producers situated in a single location, and the biggest producer in the Gulf Cooperation Council.
Established in 1989, Chemanol is a public Saudi joint-stock company located in the Kingdom’s Jubail Industrial City.
