Multiple subsidiaries under SinoChem Group and China National Chemical Corp (ChemChina) denied media reports claiming that the two groups are in merger talks, financial news portal ifeng.com reported on Sunday.
State-owned chemical companies SinoChem Group and ChemChina are in discussions about a tie-up to create a global chemical, oil and agricultural giant with almost $100 billion in annual revenue, Reuters reported Friday, citing three sources familiar with the matter.
Measured by revenue and profits, Sinochem is much larger than its rival ChemChina, which is finalizing a $43 billion takeover of Swiss pesticides and seed group Syngenta. That deal would be China's largest-ever foreign investment.
The domestic merger was proposed by China's central government as part of its effort to slash the number of State-owned companies and create larger, more competitive global industry players.
Five listed units of ChemChina, including Shanghai-listed Aeolus Tyre Co, said in stock filings that after contacting the group company and stakeholders, they had found no government information in written or oral form about a reported merger between SinoChem and ChemChina as of Sunday.
