Sinochem and ChemChina set to merge

According to the Chinese news portal “Caixin”, China’s two state-owned chemical companies Sinochem and China National Chemical Corp. (ChemChina) are to merge into a new company and create the world’s biggest chemical company worth around USD 120 billion. The government agency responsible for controlling China’s largest state-owned enterprises announced that Ren Jianxin, the long-serving chairman of ChemChina, will retire and that Sinochem Group Chairman Ning Gaoning will lead the consolidated chemicals company.

Rumors of the planned merger have persisted for two years. While no clear plans regarding the structure of the new company have yet been announced, sources close to Sinochem confirmed that the merger has been decided upon, the report said. The merger is thought to be one of the Chinese government’s conditions for its support of ChemChina’s USD 49 billion takeover of Swiss agrichemicals company Syngenta AG.