Chemanol signs binding offers to acquire 84% of ADDAR Chemicals & 80% of Global Company for Chemical Industries

Methanol Chemicals Company (Chemanol) announces that it has signed two binding offers to acquire 84% of ADDAR Chemicals Company (ACC) &80% of Global Company for Chemical Industries Ltd. (GCI). The final evaluation of the two transactions will be determined based on the financial and legal due diligence, the outcomes of negotiations with lenders and creditors, and various other conditions that guarantee a positive impact for the Company if the acquisition procedures are completed.

The company stated on Monday on Tadawul that the offer shall exclusively be binding for the parties for a period of 6 months from the date of its signature. Noting that the parties agreed that determining the final amount of the transaction shall be based on the realization of a number of performance indicators for the company subject of the acquisition transaction.

Through the acquisition of ADDAR Company, Chemanol aims to increase its products basket and achieve backward integration of its products in line with its strategic and expansion plans, as ACC produces several chemical materials which are used as feedstock for the Company’s existing and future products.

While through the acquisition of Global Company, Chemanol aims to increase its products basket and achieve backward integration of its products in line with its strategic and expansion plans. The transaction will also contribute to strengthening the Company’s business which is not influenced by feedstock prices and economic cycles of the petrochemical market.