InterviewGPCA '11: Equate eyes M&A outside Middle East

15 December 2011 10:38  [Source: ICIS news]

DUBAI (ICIS)--Kuwait's Equate Petrochemical is looking at M&A (merger and acquisitions) opportunities outside of the Middle East because of gas feedstock shortage in the country, CEO Hamad Al-Terkait said on Thursday.

“The reason we want to grow outside of Kuwait is the limitation of feedstock, and thus, we are unable to grow within Kuwait,” Al-Terkait said at an interview with ICIS at the sidelines of the sixth annual GPCA (Gulf Petrohcemicals and Chemicals Association) forum.

“Now is a good time for merger and acquisition. The [price of] assets is getting really reasonable,” he said.

Equate's criteria does not include technology, but the company will look at production facilities which are economical to complement its current olefins, polyethylene (PE) and ethylene glycol (EG) portfoilio.

“This is the future of Equate, and the timeline is open,” he added.

Other criteria include feedstock advantage and proximity to key markets, he said.

Al-Terkait does not rule out the possibility to expand in the US to take the feedstock advantage of the shale gas.

“We are open to opportunities all around the world,” he said.

By: Ong Sheau Ling
+65 6780 4359

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