Kuwait- EQUATE gets full acquisition of MEGlobal
Date
12/23/2015 10:05:53 PM
(MENAFN- Kuwait News Agency (KUNA)) KUWAIT Dec 23 (KUNA) -- EQUATE Petrochemical Company Kuwait's first international joint venture in the industry has finalized acquisition of 100 percent ownership in MEGlobal it announced on Wednesday.The transaction has transformed EQUATE into a global leader in the petrochemical sector the company added in a press statement."This is an extraordinary day in the proud history of EQUATE and MEGlobal. The addition of MEGlobal positions EQUATE as an industry-leading petrochemical enterprise with an enhanced leadership position in the ethylene glycol (EG) sector in which MEGlobal maintains a 12 percent market share today" said EQUATE President and CEO Mohammad Husain."Together we are building a new enterprise that will serve as a foundation for sustainable growth in the petrochemical sector in Kuwait and the industry globally" Husain added.He noted that since its inception in 1995 "EQUATE has been a pioneer in the petrochemical sector." "We had consistent growth over the last 20 years and contributed greatly to the local economy and community. As we continue creating value for our shareholders by growing our businesses and further support invest and create opportunities that will help make a positive difference. This is part of our core corporate values" Husain concluded.Currently EQUATE contributes close to 60 percent revenue of Kuwait's non-oil exports in line with the country's economic strategy of diversification. The acquisition will further strengthen this position and create added -value across varied sectors in the country today. MEGlobal will provide EQUATE with a major growth opportunity through a new world-scale project in the US. Gulf Coast utilizing advantaged shale gas feedstock. In addition the transaction will bring with it an experienced leadership and operations team as well as a global network of clients the statement said.The combined entity will benefit from significant economies of scale with a larger and more diversified distribution platform through Kuwait Germany Canada and the US. Furthermore it will result in an optimized cost structure with multiple points of access to feedstock from sources in North America and the Middle East with improved operational efficiency. (end) msa
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