Saudi firm Chemanol has signed a share purchase agreement to acquire an 84% stake in Addar Chemicals for $12.3 million in cash. This is contingent on meeting predefined performance indicators and achieving a targeted return on investment. The transaction is due to be completed on 31 March 2024.

Chemanol, a Saudi producer of methanol chemicals, has signed a joint venture pact with its compatriot Global Company for Downstream Industries (GDI) to establish a 60-40 joint venture (JV) to produce speciality chemicals. The company aims to establish itself as a major player in this field in the region.

Oilfield chemicals player Baker Hughes and Dussur, which is co-owned by Sabic and the Saudi Arabian Public Investment Fund, have signed an agreement to form a joint venture company to make oilfield and industrial chemicals in Saudi Arabia.

The 51-49 venture includes Baker Hughes’ existing chemical blend plant in Dammam and manufacturing facility in Jubail. The latter will supply the Saudi market while expanding localisation opportunities. The deal is expected to close in Q3.

Two Western players, Italy’s Italmatch Chemicals and Colonial Chemicals of the US, have recently signed investment plans that will see them manufacturing in the Kingdom of Saudi Arabia (KSA) for the wider Gulf region. Terms were not disclosed in either case.

Together with Biolab Arabia, Genoa-based Italmatch has created a 60-40 joint venture called Italmatch Biolab Industrial. This will make performance additives for applications in water and process treatment, and the oil and gas sector, with a focus on thermal and membrane based desalination, at Al-Jubail.