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Asif Iqbal
Doha
The impending integration of Qatar Vinyl Company (QVC) into Qatar Petrochemical Company (QAPCO) is just the latest among a string of mergers to be announced by Qatar Petroleum soon, according to a senior QP official.
"This is a difficult situation and we can't run away from the reality," Yousif Mousa Abuhelaiqa, who is also a prominent Qatari investor, told Qatar Tribune.
"It is time to take some bold steps and for this we have to appreciate the decisions of (QP) President and CEO Saad Sherida al Kaabi."
Kaabi on Sunday announced the merger between QVC and QAPCO, a decision he said was meant to create"higher value for both shareholders".
Similarly, in December last year, Qatar Petroleum announced the integration of Qatargas and RasGas following more than two-year slump in oil prices.
According to Abuhelaiqa, these mergers are the need of the hour as they help reduce operational costs.
"Merger enhances competitiveness, financial performance, and resilience of the companies involved. It also cuts costs and enhances profitability of the merged entity," he added.
QP, Abuhelaiqa said, had done due diligence of all its operations and would integrate any activity that would help in creating a more efficient organisation to uphold the best interest of the country.
The official further said these mergers might be painful at first, but would pay dividends in the long run.
"The purpose of these mergers is to streamline operations so that resources can be optimised and profits enhances. It also go a long way in supporting the country's sustainable economic growth."
Urging the private sector to take cue from QP, Abuhelaiqa said if ministries and QP operations could merge, private sector should also explore ways of integrating their subsidiaries to tide over the current situation.
He said the private sector played an important role in the country's economy and should try to create higher value for their stakeholders, and enhance their competitive position.
