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.
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. Reuters has reported that the two companies were in merger talks to create the world’s biggest industrial chemicals firm worth around $120b, to be led by the head of Sinochem.
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. The scope of the new mega-company's activities is from seed trade to iron ore and oil, which will make it possible to become a leader in the global agricultural chemicals sector.
Source: reuters.com.
