Chemanol completes acquisition of ADDAR Chemicals

Logo of Methanol Chemicals Co. (Chemanol)

Methanol Chemicals Co. (Chemanol) announced in a statement to Tadawul that it finalized the regulatory measures as well as the ownership transfer related to the acquisition of ADDAR Chemicals Co.’s (ACC) stake.

Chemanol said the acquisition is aimed at enhancing its share in the specialty chemicals market and diversifying its product range, in line with its strategic expansion plans.

It underscored that this acquisition fortifies its business and product offerings, which are not affected by fluctuations in feedstock prices and economic cycles within the petrochemicals market.

The stake purchase would contribute to reducing ACC’s production costs by integrating its services with Chemanol. Additionally, Chemanol will provide some necessary materials for ACC's production process, with some of the latter’s products to be merged with Chemanol production operations.

The relevant financial impact will likely appear in Q1 2024 financial results, the statement added.

In November 2023, Chemanol signed a share purchase agreement (SPA) with the shareholders of ACC to acquire an 84% stake in the latter for a SAR 46.2 million cash consideration, to be disbursed partially and within specified intervals, as per the terms stipulated in the SPA, Argaam reported.