Feb. 5, 2020
In 2020, SinoChem and ChemChina are expected to complete the first merger and acquisition between two Chinese central government-owned enterprises. Until 3rd February, several subordinate A-share companies belonging to SinoChem and ChemChina announced that both are planning a strategic consolidation, adding that the details of the consolidation are currently going through the necessary approval and supervisory processes.
Currently, almost all listed companies belonging to SinoChem and ChemChina have made similar public announcements, inducing ChemChina’s seven A-share companies, which are Adisseo, Haohua Chemical, Aeolustyre, Krauss Maffei, ADAMA, Shenyang Chemical and Cangzhou Dahua, as well as SinoChem’s A-share companies, which areYangnong Chemical, SinoChem International, Win-All Hightech and *ST Salt Lake, along with its H-share companies China Jinmao, Jinmao Hotel and SinoFert.
On 6th January, 2020, SinoChem and ChemChina initiated the integration of their agrochemical industry chain, which involved equity changes to several listed companies. The agrochemical business integration of thetwo companies is not only an important step to the agrochemical business integration of central government-owned enterprises, but it will also pave the way for the merger between the two giant groups. In under a month, their strategic consolidation will be completed, something that the industry has been expecting to happen for many years.