Kuwait’s Kipco Aims to Complete Qurain Chemical Deal This Year - Bloomberg
Kuwait Projects Co. said it hopes to complete a takeover of Qurain Petrochemical Industries Co. -- a company with a $1.3 billion market valuation -- by the end of this year.
“Once completed, there’s going to be a bigger plan,” said Joe Kawkabani, chief investment officer of Kuwait Projects, known as Kipco. The tie up will be “super complementary.”
Kipco is an investment firm focusing on the Middle East and North Africa.
The proposed deal follows a surge in the price of chemicals and other petroleum products used to make everything from plastics to paint. Demand has jumped in the past year as major economies recovered from the coronavirus pandemic. Russia’s attack on Ukraine led to energy and chemical prices climbing even more.
“We’ll look at the assets and decide what’s core” once the merger is completed, Kawkabani said. “We’ll be looking at selling and recycling, and looking for new investment, to create a more profitable entity.”
The two companies signed a memorandum of understanding about a combination, a process subject to various approvals. A steering committee will be formed in the coming days, according to Kawkabani, after which the due diligence process will start.
No comments:
Post a Comment