The Chinese chemical companies Sinochem and ChemChina are planning a merger. Together, both companies would form a new world leader.
A mega-merger is said to be planned to form a new chemical giant in China. The two state-owned companies Sinochem and ChemChina want to join forces to become a global leader in industrial chemistry, as the financial publication “Caixin” reported on Saturday, citing insiders. The new $120 billion company will be directed by Sinochem head Ning Gaoning.
However, there is still no concrete framework for how the merger should proceed. Sinochem did not want to comment on the reports. Equally ChemChina, who had acquired Swiss agrochemical group Syngenta for estimated $43 billion last year, has also issued no comment.
Merger talks between the chemical companies were first reported in late 2016, but dismissed by both sides as rumours. Reuters reported last year that the two corporations had accelerated negotiations around May after the competition authorities approved the acquisition of Syngenta by ChemChina.