Merging two companies advance their growth and diversification in the form of its market contour and many more facets. The converging of two companies is the agreement between two trades about their tenure and working system. Both parties conduct deal to understand the structure and terms of each other’s company. On the basis of these terms, a company takes over other company’s infrastructure, products and services.
Keeping these aspects in front nationalized Qatar Petroleum is also on the way to merge with Qatar Vinyl (QVC), which is owned by Mesaieed Petrochemical. After this large scale amalgamation Qatar Petroleum would turn out to be Qatar Petrochemical, which will be branch of Industries Qatar. It makes these two companies a distinct corporation which will be driven, directed and conducted under a single name QAPCO.
This combination is not to change the value of shareholders’ tenure as this shareholder ownership does not vest wage.
Saad Sherida Al-Kaabi, president and CEO of Qatar Petroleum mentioned: “Aspire of this assimilation is to get better in competitiveness, monetary recital, synergy and flexibility in all these ways of both firms.”
The stockholders can take profit after merging Qatar and Mesaieed Petrochemical diligences. The operating cost is also decreased and boosts the avail of both industries. The converging of firms gives chance to raise the share markets. When the two organizations meet, it reduces the fear of competition in the market but an industry need a large amount to merge and accept with other company’s policies.
Firstly in this process, the capabilities, idea, work force and resources as infrastructure, raw material will be combined of two industries named QVC and QAPCO to increase the value of shares in the market for their respective investors. In this era of great competition, this combination will make position strong universally in the field of petrochemical industry. When two trade’s work force and potential meets and work together then they give high competition in the market and come forward powerfully.
After converging, it will be built as more reliable, effective, efficient, valuable and successful association to sustain the position in the state of Qatar. It will gain attention of stockholders, consumers and also the state of Qatar.
After take over, our company comes forward as a leading industry. QAPCO will grow to be sole company after finishing the process of integration and they got power to handle the company’s function.
Saad Sherida Al-Kaabi said that Qatar Petroleum is dedicated to convey the strategy of its objectives to boost and raise the organization’s economy status and grow the emulative position in business point of view. Qatar Petroleum always helps for sustaining financial growth of Qatar state. It is difficult to maintain a strong position in the competitive world but merging helps to sustain and grow further. Qatar Petroleum gave opportunity to grow the value of their shares to QAPCO without any investment.
The process of converging is supposed to start from next month and complete till the end of this year.