Qatar Fuel (WOQOD) and Qatar Inspection Company (QTIC) have agreed to conduct a feasibility study to assess the prospects of their merger and if the proposal materializes, some key WOQOD petrol stations across the country may simultaneously provide technical inspection facilities for vehicles.
The two companies yesterday signed a memorandum of understanding (MoU) to appoint a financial consultancy that would conduct a feasibility study to assess the prospects of their merger. The findings of the study will be formally reviewed by the board of directors of WOQOD and QTIC and a final decision on the merger will be subsequently taken.
Mohammed Khalifa Turki Al Subai, Vice-Chairman and Managing Director of WOQOD’s board, and Dr (Sheikh) Khalid bin Jabor Al Thani, Chairman of QTIC’s board, inked the deal on behalf of their respective companies. Al Subei told reporters later that if the merger materializes, some six to eight petrol stations owned by WOQOD will provide technical inspection facilities for vehicles to facilitate renewal of their annual road permits. WOQOD hopes to install 10 new petrol stations next year, reiterated Al Subai.
“Post-merger, whenever we build a new station, we will take into account the facilities to be provided for QTIC activities,” he added. WOQOD’s petrol stations will be spread across the country. Khalid bin jabor said that if the merger takes place, this will be the first experiment of its kind in Doha to be successfully tried since both the companies are listed entities (they are listed on the Doha Securities Market). “It’s a prudent idea and will benefit both firms,” he remarked.
He said that the idea of the merger was originally mooted by the Finance Minister, H.E. Yousef Hussein Kamal, who is also the Acting Minister of Economy and Commerce. The financial consultants to be appointed will also assess the assets and liabilities of the two companies and decide the fair price of their shares, Khalid bin Jabor said.