PTT Pcl’s long-awaited group consolidation plan on hold

06-Dec-10

PTT Pcl has put a long-awaited group consolidation plan on hold because it wants to focus on legal problems at affiliate IRPC Pcl as well as other matters, as per Reuters. State-controlled PTT plan to consolidate its petrochemical and refinery businesses had been widely expected to involve a merger between IRPC and PTT Aromatics and Refining Pcl to create Asia's eighth-largest oil refiner. The legal problems at IRPC have triggered speculation that PTT may consider a possible merger between PTTAR and PTT Chemical Pcl PTTC.BK, leaving out IRPC. The consolidation plan led to expectations the move would help cut costs and boost efficiency within the PTT group. But the process has been repeatedly pushed back and previous reports of delays have hurt the shares.