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    Home > Organic Chemistry Topics > Organic Chemistry Project > Media: The merger of Sinochem Group and China National Chemical Corporation is beginning to take shape

    Media: The merger of Sinochem Group and China National Chemical Corporation is beginning to take shape

    • Last Update: 2022-02-18
    • Source: Internet
    • Author: User
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    The merger and reorganization of China's two major chemical giants can be expected
    .
    ?? The Economic Observer has learned exclusively that the merger and reorganization between China Sinochem Corporation (Sinochem) and China National Chemical Corporation (China National Chemical) has begun to take shape
    .
    ?? However, due to multiple considerations such as business collaboration, once the two are really merged, how to carefully study the integration process and integration goals in the future is still a matter to be studied
    .
    ?? Researcher Xu Baoli of the Research Center of the State-owned Assets Supervision and Administration Commission believes that if the two companies are really merged in the future, the business level can be combined with upstream and downstream, and the industrial chain will be more complete, which will help form a more stable transaction relationship than the current one
    .
    ?? In order to build a more complete chemical industry chain, since the first half of this year, ChemChina has made frequent actions
    .
    ?? The most representative one is ChemChina's acquisition of Syngenta with a total transaction value of over US$40 billion, of which the second delivery of the Syngenta offer was just completed in June 2017
    .
    This super merger, which set a record for China's overseas mergers and acquisitions, laid the foundation for ChemChina to open up a complete pesticide industry chain
    .
    ?? Wang Jiang, director of the Special Work Department of the Research Center of the State-owned Assets Supervision and Administration Commission, said that taking ChemChina and Sinochem as examples, under the supervision of the same investor, the merger and reorganization of the two will not be particularly difficult.
    The challenge worthy of attention is that the real Integration issues after the merger
    .
    ?? So, how to "integrate"? ?? A state-owned researcher who did not want to be named said that if the two merged, the transformation and adjustment from the perspective of a state-owned capital investment company would be a path
    .
    ?? However, as of press time, the State-owned Assets Supervision and Administration Commission has not given a positive response to the above-mentioned merger, and people close to Sinochem Group said that this matter is currently "not much to say"
    .
    ?? New actions?? ChemChina is preparing for the expansion of a more complete and stronger chemical sector
    .
    ?? In June 2017, the company news on the official website of China Guoxin Holdings Co.
    , Ltd.
    mentioned: “China Guoxin Holdings Co.
    , Ltd.
    In order to promote the reorganization and integration of the fluorine chemical business of the National Star Group and ChemChina
    .
    ” Yang Xingqiang, general manager of ChemChina, said at the above-mentioned free transfer ceremony that the division of National Star Group into ChemChina can realize the business of both parties in the fluorine chemical industry.
    Synergy and resource sharing are conducive to ChemChina's optimization of its layout structure, enhance the competitiveness of its main business, and promote the improvement of overall operating efficiency
    .
    ?? However, due to the transfer, "we don't know what we are going to do now, and we still don't know the company's new business positioning," on August 2, a person close to the National Star Group revealed to the Economic Observer.
    , Whether this action is related to the possible mergers and reorganizations between ChemChina and Sinochem Group, and the construction of a larger chemical territory, it is not easy to say for the time being, the subsidiary companies do not know the depth of the superior company (China National Chemical).
    Level considerations
    .
    It is reported that the previous main business of the National Star Group includes the sale of non-metallic ores, metal ores, metal materials, construction materials, investment and asset management
    .
    ?? In addition to ChemChina, China Guoxin and Sinochem have also negotiated cooperation matters
    .
    ?? On March 28, Zhang Wei, President of Sinochem Group, met with China Guoxin General Manager Mo Dewang and his party
    .
    The two parties focused on in-depth discussions on potential cooperation opportunities in the areas of Sinochem's main business, and jointly expressed a good willingness to cooperate
    .
    ?? Are the above trends necessarily related to the merger and reorganization of the two major chemical giants? The above-mentioned state-owned researcher, who did not want to be named, said that if restructuring is not considered, from another perspective, it is not contradictory that China Guoxin is in contact with two leading chemical companies at the same time.
    Guoxin is an operating company and has no industrial mission, so he can invest.
    Any industry that he believes is profitable and has room for appreciation
    .
    However, ChemChina, like COFCO, has a clear industrial mission to maintain a certain and relatively high proportion of investment holdings in its own fields.

    .
    ?? Wang Jiang pointed out that the free transfer of the National Star Group can be understood from the market demand of China Guoxin, a pilot state-owned enterprise "incubating industry"
    .
    If it is said that the inclusion of National Star Group is not enough to explain the intention of ChemChina to expand its chemical territory, then the acquisition of Syngenta before National Star Group can more clearly reflect the development intention of ChemChina
    .
    ?? In June 2017, China National Chemical Corporation announced the completion of the second delivery of the Syngenta offer
    .
    According to the data, shareholders who accepted the offer after May 4, 2017 received a consideration of US$465/share on June 7, 2017, and holders of American Depositary Receipts (ADS) received a consideration of US$93/ADS on the same day.

    .
    ?? Up to now, ChemChina owns 94.
    7% of Syngenta shares
    .
    ?? Shanghai Tianqiang Management Consulting Co.
    , Ltd.
    general manager Zhu Boshan said that in the past 10 years, ChemChina has been a relatively active expansion company, committed to various forms of acquisitions
    .
    In the future, if you want to enter the field of energy and chemical industry, it is also reasonable.
    After all, ChemChina's original chemical industry is relatively traditional, and it is understandable to seek new business sector development
    .
    Zhu Boshan also said that if ChemChina merges with Sinochem, ChemChina’s energy and chemical sectors will complement Sinochem’s advantages and expand its competitiveness in the international market, and Sinochem can further enhance its competitiveness.
    The strength of the domestic market business segment
    .
    The interoperability and cooperation between the two are expected to form a chemical giant that opens up the entire industrial chain
    .
    ?? Direction?? If merged, how to "combine"? The Economic Observer has learned that, judging from the current progress, the discussions on the merger and reorganization of ChemChina and Sinochem are progressing relatively slowly, and news will not be released soon
    .
    For example, the dominant merging party and the merged party have yet to compete on many details.

    .
    ?? However, the above-mentioned state-owned researcher, who did not want to be named, said that we can try to build a new platform from the superior.
    This platform is not necessarily a new platform, and the name of the company can be adjusted.
    Continue to find a proper plan in the special discussion
    .
    ?? A path that can be explored after the reorganization is to adjust and transform the two after the integration to a state-owned capital investment company
    .
    For example, Baowu Group is an example of transformation into a state-owned capital investment company after mergers and reorganizations
    .
    ?? According to the evaluation of the pilot effects of state-owned capital investment companies conducted by the State-owned Assets Supervision and Administration Commission, up to now, the functional positioning of the pilot state-owned capital investment companies has gradually become clear
    .
    After gradual exploration, state-owned capital investment companies focused on important industries and key areas to promote industrial agglomeration, transformation and upgrading, and optimize the layout of state-owned capital
    .
    ?? Moreover, state-owned capital operating companies focus on improving the efficiency of state-owned capital operations of commercial enterprises and promote the rational flow of state-owned capital
    .
    According to the relevant spirit, the central enterprises in the future will be mainly divided into three categories, namely, entity industry groups, investment companies and operating companies
    .
    ?? The above-mentioned state-owned researchers believe that if the merger and reorganization of ChemChina and Sinochem is understood from the perspective of two types of companies, the management and control of subsidiaries of state-owned capital investment companies that may be formed in the future can also be more relaxed, which will help invigorate the following The subsidiary companies in the chemical industry are also conducive to the realization of a more flexible multi-industrial layout
    .
    ?? If ChemChina and Sinochem are reorganized and move to the other of the two types of companies, is it feasible to develop in the direction of state-owned capital operating companies? ? The state-owned researcher said that from the perspective of ChemChina, if it is reorganized in the future, the possibility of turning into an operating company is lower than that of an investment company, because ChemChina has its own industrial business with a clearer direction and is unlikely to transform.
    Become a state-owned capital operating company like China Guoxin and China Chengtong
    .
    He added: “In the case of ChemChina and Sinochem, first of all, there will be no major and important adjustments and changes.
    ChemChina mainly relies on the domestic market.
    The idea of ​​overseas mergers and acquisitions on this basis is to use foreign companies.
    Syngenta is a good example to meet domestic industrial upgrading and domestic market demand
    .
    ”?? Develop competitiveness in the international market and complement the domestic market business.
    The two will jointly open up traditional chemical, energy and chemical industries.
    For the entire industrial chain of the chemical industry, or the transformation to a state-owned capital investment company, the operational paths that may appear during these mergers are not exclusive
    .
    ?? The above-mentioned state-owned researchers believe that multiple paths can "coexist" and are not completely isolated.
    "It can not only meet the timing of the operation of the two types of companies, but also form a state-owned capital investment company's entire industrial chain operation pattern
    .
    " ? Game?? Advancing mergers and reorganizations, challenges remain
    .
    Zhu Boshan bluntly said that in the process of negotiating mergers and reorganizations, it may be difficult to find a business synergy point recognized by both parties, which will be a difficult problem in integration
    .
    ? "The strengths of ChemChina are in the domestic market and traditional chemical business.
    Sinochem Group started its development from import and export trade.
    Given the complexity of the business sectors of both parties, it will take a lot of effort to find a point of coordination for multiple businesses in a short period of time.
    ", Zhu Boshan told a reporter from the Economic Observer
    .
    Public information shows that Sinochem Group was established in 1950, formerly known as China National Chemical Import and Export Corporation.
    It is currently one of China’s four largest national oil companies, a leading integrated service provider of chemical products, and the largest agricultural inputs (chemical fertilizers, Seeds, pesticides) and modern agricultural services integrated operation enterprises, and have a strong influence in the high-end real estate hotels and non-bank financial fields
    .
    ? Sinochem Group has established five business divisions in energy, chemical industry, agriculture, real estate and finance, professionally operated more than 300 domestic and foreign business organizations, and controlled "Sinochem International" (SH, 600500) and "Sinochem Fertilizer".
    (HK,00297), "China Jinmao" (HK,00817) and many other listed companies
    .
    ?? And ChemChina is a state-owned enterprise established on the basis of enterprises under the former Ministry of Chemical Industry.
    It is the largest chemical enterprise in China.
    Its strategic positioning is "old chemicals, new materials", including new chemical materials, special chemicals, and basic chemicals.
    , Petroleum processing, agrochemicals, tire rubber and chemical equipment
    .
    ?? Xu Baoli said that if the two leading companies merge in the future, we still need to consider the issue of operational efficiency, how to efficiently synergize the two leading chemical companies with multiple sectors and businesses, and how to effectively enhance market competitiveness after the merger , The integration of upstream and downstream of the industrial chain is closer and more complete, and how to form a more stable transaction relationship, these are still to be discussed
    .
    In fact, apart from Sinochem Group and China National Chemical Corporation, other central SOE mergers and reorganizations, including heavy equipment manufacturing and coal power generation, are also steadily advancing
    .
    ?? In accordance with the thinking of the SASAC, in the next step, the SASAC will explore the integration of overseas assets, pool resources to form a joint force, and better exert synergies
    .
    And further strengthen the top-level design, intensify the promotion, according to the principle of "mature one household, promote one household", centering on the goal of becoming stronger and better, and speed up the pace of in-depth adjustment and reorganization
    .
    Continue to advance the reorganization of central enterprises at the group level, deepen the pilot merger and reorganization of central enterprises, and strengthen the evaluation of the integration effect after reorganization
    .
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