The Kuwait Projects Company Holding “KIPCO” expected to complete its acquisition of Qurain Petrochemical Company during the current year, after the “Standard & Poor’s” credit rating agency considered that KIPCO will struggle to improve its financial position if the deal fails.
The company stated that the merger deal is progressing according to schedule with the due diligence process proceeding well.
In March, KEPCO and Qurain Petrochemicals signed an agreement to evaluate a possible merger between the two companies, which would lead toCreate a new entity with a market value A combined amount of about $2.7 billion.
Standard & Poor’s placed KIPCO under credit control with negative indicators.
The credit rating agency also considered the merger with Qurain Petrochemical Company as a very pivotal event, which is likely to limit further erosion of the credit position of KEPCO in the event of successful completion.