Sector News

China's ChemChina, Sinochem set to merge: Caixin

July 2, 2018
Chemical Value Chain

Chinese state-owned Sinochem Group and ChemChina will merge to create a new company, and Sinochem Chairman Ning Gaoning will become the chairman of ChemChina, financial publication Caixin reported late on Saturday.

Reuters has reported that the two companies were in merger talks to create the world’s biggest industrial chemicals firm worth around $120 billion, to be led by the head of Sinochem.

Sinochem Chairman Ning will serve as Chairman and Party Secretary of ChemChina, while ChemChina’s long-serving Chairman Ren Jianxin retires, Caixin reported, citing sources close to the companies.

The personnel change was announced on Saturday at ChemChina’s office by officials from State-owned Asset Supervision and Administration Commission and the Ministry of Organization, the report said.

“However, there is no definite plan for how to form a new company,” the publication said.

A Sinochem spokesman declined to comment on the personnel changes, or the possible merger of the companies.

A ChemChina media official did not respond to a request for comment.

Talks to create a Chinese chemicals powerhouse were first reported in late 2016, but were dismissed by both companies as rumor.

Reuters reported that the two companies accelerated negotiations around May last year, after regulators cleared ChemChina’s $43 billion acquisition of Swiss pesticides and seeds group Syngenta.

Beijing sees a Sinochem and ChemChina deal as a blueprint for streamlining and consolidating its sprawling, debt-heavy state-owned enterprises, leaving fewer, but more powerful, national champions.

By Kevin Yao and Chen Aizhu

Source: Reuters

comments closed

Related News

November 27, 2022

ICIG to acquire MSSA from Nippon Soda

Chemical Value Chain

International Chemical Investors Group (ICIG) has entered exclusive negotiations with Nippon Soda and made what it said is a “firm and binding offer” to acquire the Japanese group’s offshoot Métaux Spéciaux (MSSA), a sodium metal specialist.

November 27, 2022

FIFA World Cup: Coca-Cola launches 100% recycled PET bottles to promote Qatari recycling

Chemical Value Chain

Aligning with the SC’s key initiatives on responsible plastic recycling, Coca‑Cola Middle East’s pilot of 100% rPET bottles marks the first time the packaging will be in circulation at a FIFA World Cup tournament and serves as Coca‑Cola’s debut in locally producing the bottles in the region.

November 27, 2022

Neste acquires another used-oils business in the U.S.

Chemical Value Chain

Through the transaction, Neste is acquiring a leading UCO collection and recycling business on the US West Coast, covering the collection, logistics and storage of UCO in California, Oregon and Washington. Together with the previous acquisitions (…) the transaction continues to enhance Neste’s global raw materials sourcing platform.