QP Petchem Merger

State firm Qatar Petroleum (QP) plans to merge two petrochemicals affiliates in a bid to cut costs and boost efficiency. Qatar Vinyl Company (QVC) will be integrated into Qatar Petrochemical Company (Qapco), which is owned 80% by QP-led Industries Qatar and 20% by France’s Total.

QVC’s shareholders are QP’s Mesaieed Petrochemical Holding Company (MPHC) with 55%, Qapco with 32% and QP with 13%. QP says the merger will not change QVC’s ownership, but will “allow the realization of synergies through creating a single entity that operates the assets on behalf of both companies’ shareholders.”

The merger is the latest Qatari readjustment after the mid-2014 collapse in crude oil prices. QP CEO Saad Sherida al-Kaabi says “this integration aims to enhance the competitiveness, financial performance and resilience of both companies.” (CONTINUED - 373 WORDS)