Shareholders of PTT Chemical (PTTCH) and PTT Aromatics and Refining (PTTAR) have approved a merger between the two PTT subsidiaries. This move will create South East Asia’s third largets petrochemical firm behind Petronas Chemical and Siam Cement Group (SCG), in terms of enterprise value. As reported by The Nation, about 99% of PTTAR's shareholders agreed to the merger, while 96% of PTTCH shareholders gave it a nod. Both companies are working on the merger process, which is already about 80% complete. Shares of the new company are expected to be traded on the Thai stock market in August. Parent company PTT has targeted revenue of Bt400 billion for the merged company this year, although the target was set before the global oil price skyrocketed. The merged company would have the opportunity for synergies in manufacturing new petrochemical products such as acrylonitrile butadiene styrene (ABS), polycarbonate and propylene oxide, which can be used in the automotive industry. It is expected that the earnings of the merged company from synergies in the existing business of both companies - before interest, tax, depreciation and amortisation - will range between US$80-150 mln per annum, depending on world oil and petrochemical prices.