Saudi-based Methanol Chemicals Co., known as Chemanol, has unveiled its strategic plan to diversify its product portfolio by acquiring controlling stakes in two chemical firms.
In a recent disclosure to the Saudi Stock Exchange (Tadawul), Chemanol announced the signing of a binding offer to acquire 80 percent of Global Co. for Chemical Industries Ltd. Additionally, the company confirmed its intention to acquire 84 percent of ADDAR Chemicals Co.
These acquisitions align with Chemanol’s expansion strategy, enabling the company to strengthen its position in the specialty chemicals market. Moreover, these new ventures will enhance the stability of Chemanol’s business by reducing vulnerability to feedstock prices and economic fluctuations in the petrochemical sector.
The financial terms of the deals have not yet been disclosed, as a thorough evaluation will be conducted based on the results of financial and legal assessments.
The agreement with Global Co. for Downstream Industries follows a strategic collaboration worth SR500 million ($133 million) signed between Chemanol and Global Co. for Chemical Industries eight months prior. The latter is a company established by the downstream-focused firm.
In terms of financial performance, Chemanol reported a net profit of SR206.4 million in 2022 after zakat and tax, indicating a 15.4 percent decline compared to the SR244 million recorded in 2021. However, the company’s revenues witnessed a positive growth trajectory, reaching SR1.07 billion in 2022, a 6.66 percent increase year-on-year from the previous year’s SR1 billion, according to the firm’s annual income statements.
Chemanol holds a prominent position as one of the world’s leading integrated global producers of methanol and derivatives. It operates the largest formaldehyde production facility in the Gulf Cooperation Council and is renowned for its consolidated operations in a single location. Established in 1989, Chemanol is a publicly listed Saudi joint-stock company situated in Jubail Industrial City, Kingdom of Saudi Arabia.