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Qatar to Join Chemical Companies Amid Merger Wave

Qatar's state-owned oil and gas corporation plans to merge two chemical subsidiaries into a single company later this year.

Qatar's state-owned oil and gas corporation plans to merge two chemical subsidiaries into a single company later this year.

Qatar Petroleum said that the operations of Qatar Vinyl Co. would be incorporated into Qatar Petrochemical Co. beginning next month.

“We will pool the distinctive resources and capabilities of QVC and QAPCO to create a higher value for both of their respective shareholders, while strengthening our global competitive position in the petrochemical industry," Qatar Petroleum President and CEO Saad Sherida Al-Kaabi said in a statement.

Qatar Vinyl is part of Mesaieed Petrochemical, while Qatar Petrochemical is part of Industries Qatar. The merger will not alter shareholder ownership.

Bloomberg noted that the Qatari government utilized consolidations — along with thousands of layoffs — to trim costs in the wake of low global oil prices. Qatar Petroleum's two liquefied natural gas units will also merge later this year; the company is the world's largest LNG producer.

Al-Kaabi added in the statement that "all Qatari nationals currently employed by QVC will be integrated into the new QAPCO organization." The "nationals" designation, however, only applies to a fraction of the country's population. Most residents are foreign workers, and the country has come under fire in recent years over the living and working conditions for migrants.

 

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