PTT Global to Acquire European Chemical Producer ‘Allnex’ for $4.75 Billion

The PTT Global Chemical PCL of Thailand is going to acquire Allnex Holding, which is a specialty chemicals producer in the continent of Europe for 4.75 billion dollars for the purpose of scaling up the presence of the company in the high-value chemicals products.

On Wednesday, 21^st July 2021, the company ‘PTT Global’ said, it is going to be acquiring 100 percent of the common stocks of the company ‘Allnex Holding’ for 4.1 billion dollars and 426 million euros in the form of loans, and the company is also going to finance the acquisition through the company’s own cash and also from the support its parent company ‘PTT PCL’.

Naphat Chantaraserekul, Co analyst of Krungsri Securities said, the company ‘PTT Global’ is having so much access cash that it can possibly help in funding their aggressive acquisitions and expansion, and this acquisition cost is looking high form their review of the recent earnings of Allnex Holdings.

PTT Global and the company’s main local rivals known as Siam Cement PCL and Indorama Ventures PCL have also stepped up for the investments and acquisitions overseas in the previous few years for the purpose of expanding their production of the materials of chemicals that are going to be used for the packaging of plastics, bottles and several other products.

The purchase of Allnex by PTT Global is now going to be the biggest acquisition overseas by a company based in Thailand singe the takeover of the Fraser and Neave Ltd in the year 2012. The global refiners have also been making the inroads into the industries like plastic and specialty chemicals in search of the better margins of profit.

With the help of the continuous and increasing electrification of the cars and a decreasing demand in the growth of oil, along with more producers of fuel across the country of China and India, which are also moving their focus to the petrochemical industries.