Perstorp acquisition to bolster PetChem earnings

PETALING JAYA: Petronas Chemicals Group Bhd’s (PetChem) acquisition of Perstorp Holding AB from Financière Forêt SARL will boost the group’s earnings and environmental, social and governance (ESG) standards.

In a report, TA Research noted that Perstorp’s boost to earnings was underpinned by the group’s targets to expand Perstorp’s capacity by 10% in the next two to three years along with its intention to replicate its business and operations in South-East Asia (SEA) and from the removal of the interest cost drag following the settlement of Perstorp’s high borrowings.