How a $1.6B Deal Could Recast Saudi Arabia’s Chemical Future

Dorf Ketal’s Italmatch deal could transform Saudi Arabia’s chemical industry and energy innovation

28 Oct 2025

India’s Dorf Ketal is in advanced talks to acquire Italy’s Italmatch Chemicals for about $1.6 billion, a move poised to redefine oilfield chemistry in Saudi Arabia and far beyond. The merger would unite two complementary specialists: Dorf Ketal’s refinery and oilfield expertise with Italmatch’s strength in water treatment and industrial additives.

The potential impact reaches well past corporate growth. Saudi Arabia, amid its Vision 2030 drive to localize manufacturing and diversify its economy, could gain a new champion for homegrown innovation. The combined company would align with the Kingdom’s ambition to build a stronger, self-reliant industrial base.

Italmatch already has ties to Dussur, the Saudi investment firm, which may give the new entity a ready-made foothold in the region. “This deal gives Dorf Ketal the scale and local presence needed to drive faster, smarter solutions,” said a Riyadh-based consultant.

For Dorf Ketal, the acquisition marks more than a global expansion. It is a strategic pivot that signals confidence in the Middle East as a future hub for specialty chemistry. Yet challenges remain, including integrating global operations, managing costs, and balancing sustainability goals with production growth.

Still, both firms share a clear focus on innovation and efficiency. Together, they could speed up the localization of advanced oilfield solutions while deepening regional expertise.

If the deal closes, it would rank among the year’s major cross-border transactions in specialty chemicals and serve as a signpost of the Middle East’s industrial transformation, where global know-how and local ambition finally meet.