State-run company Qatar Petroleum will integrate Qatar Vinyl Co., part of Mesaieed Petrochemical Holding Co., and Qatar Petrochemical Co., a unit of Industries Qatar QSC. The move is aimed at lowering operating costs and expanding presence in the global market. Shares of both companies are listed on the Qatar Stock Exchange.
According to Bloomberg, Qatar Petroleum owns 74.2% of Mesaieed and 51% of Industries Qatar.
Qatar Petroleum Chief Executive Officer Saad Sherida Al Kaabi said that shareholders of both companies will benefit from this integration. The merger will start in March and will be completed this year.
Qatar Petroleum is the world’s largest producer of liquefied natural gas. This year, the company will also merge its two LNG units, Qatar Liquefied Gas Co. and Ras Laffan Liquefied Natural Gas Co.
The government of Qatar uses consolidation as a tool to reduce costs as oil prices have fallen by half since 2014.
So far, at least four ministries have been integrated. It has also become known that Qatar Investment Authority is in process of grouping $100 billion of investments in local companies into a new unit.
Moreover, Masraf Al Rayan QSC, Barwa Bank QSC and International Bank of Qatar QSC announced in December 2016 they are ready to create the largest sharia-compliant bank in the country.
