KIPCO announces intent to merge with Qurain Petrochemical Industries. ‘Combined entity would be a larger market capital and a more diversified portfolio’ says company’s Gro
Event Location
Kuwait, Kuwait
Start Time
18 March 2022, 12:00 AM
End Time
31 March 2022, 12:00 AM
Kuwait Projects Company (Holding) – has announced reaching a preliminary agreement to merge by amalgamation with Qurain Petrochemical Industries Company (QPIC). The two companies signed a Memorandum of Understanding (MoU) whereby they agreed to assess the merger proposition.
The merger is subject to a detailed process as per Kuwaiti laws and regulations. This includes due diligence, valuation of both entities and fairness opinion by licensed independent advisors, in addition to regulatory approvals and the approval of stakeholders including the Extraordinary General Assembly of both parties.
“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.”
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.”
Qatar business news 2022Kipco Qurain chemical deal