Cementhai mulls consolidation with rival PTT

Cementhai Chemical Company, a unit of Siam Cement Plc, seems willing to mull consolidation in a bid to bring order to the Thai market. The company currently holds stakes in National Petrochemical Plc (25%) and Thai Olefins Plc (7%). PTT holds 38% in NPC and 45% in TOC. SCC is willing to play the role of a consolidator in the petrochemical sector in Thailand along with its much bigger rival, PTT Plc to merge the two and create a larger entity. Once the two petrochem majors agree upon the prouct-split post merger, both PTT and Cementhai will cease to compete with each other, and could attain world class size to be able to take on the global giants. Siam Cement has said it would remain as a partner in the merged entity. The completion of the merger is estimated by June 30.