Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Companies  >>   Mergers delayed for PTT
NEWS UPDATES 21 July 2010

Mergers delayed for PTT

Related Stories

June 18, 2010
SCG Paper sees 10 percent sales hike

June 11, 2010
Thai hotel group wants to expand

April 19, 2010
Isuzu expects D-Max to boost its sales

March 23, 2010
Dealers worry Thai unrest may affect car exports to Indonesia

March 23, 2010
Dealers worry Thai unrest may affect car exports to Indonesia

German firm to build Asean’s top solar park in Thailand

The consolidation plan for PTT's oil-refining and petrochemical units faces further delays as a number of legal issues need serious discussion, according to Prasert Bunsumpun, the president and CEO of the country's largest oil company.

The PTT Group has been planning for more than a year to merge its refining and petrochemical units in order to create synergy and improve cost efficiency, according to the Bangkok Post.

The first phase would focus on PTT Aromatics and Refinery, the country's largest integrated aromatics refinery, which is 49 percent owned by PTT, and IRPC, 36 percent owned by PTT. The merger would create Asia's eighth-largest oil refiner.

The plan was postponed from the end of last year to early next year and now may be postponed further.

However, PTTAR president Chainoi Puenkosoom had hoped to present a proposal to the PTT board this week, but Mr Prasert said yesterday the plan would not be on the agenda of the directors' meeting.

The biggest concern relates to outstanding lawsuits lodged by Prachai Leophairatana, the founder of Thai Petrochemical Industry, which PTT acquired in a debt restructuring and renamed IRPC.

"It is impossible that the plan will be introduced as previously scheduled by the first quarter of next year," said Mr Prasert. "There are a lot of issues that require more in-depth studies and serious discussions."

Outstanding lawsuits against IRPC's former shareholder, as well as global energy and chemical business trends were among the issues, he added.

The board of PTTAR itself was still studying the issues, he said.

One of the concerns relates to a recent investigation by the national anti-graft agency into the government's handling of the business rehabilitation plan of TPI before it became IRPC.

Last week, the National Anti-Corruption Commission ruled that former prime minister Thaksin Shinawatra was wrong to endorse the Finance Ministry as an administrator for TPI's rehabilitation plan in 2003.

TPI was Thailand's largest corporate debt defaulter after the 1997-98 Asian economic crisis. It was renamed IRPC in 2006 after the government had intervened in 2003 and PTT took control of it in late 2005 as part of the restructuring.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand