Sinochem Group and ChemChina are in advanced merger talks. Details of the merger plan are not yet clear and under negotiations, still a subject of change. The potential deal would add to a wave of mergers planned by the central government as part of its efforts to optimize the operations of state-run companies. The possible merger between Sinochem Group and ChemChina would create an international chemical group with revenues of about 100 billion USD. Moreover, the merger between the two giant chemical companies in China will change the global shipping market and may be affected by the potential production and export changes.
According to sources close to the negotiations, the merger will exclude the SinoChem Shipping, which will be separate into an own company. Currently SinoChem Shipping is the largest liquid chemical shipping company in China, operating a fleet of 72 chemical tankers and probably will be segregated from the merger of the two giant state-run chemical enterprises.
ChemChina is China’s largest chemical company in the product segments of agrochemicals, rubber products, chemical materials and specialty chemicals, industrial equipment, and petrochemical processing. The company has more than 140,000 employees.
Sinochem Corporation is a Chinese state-run conglomerate, which is primarily engaged in the production and trading of chemicals and fertilizer and exploration and production of oil. Its majority owned fertilizer subsidiary Sinofert is involved throughout the chain from production of the product and procurement on international markets to distribution and retail.