ChemChina-Sinochem megamerger soon to finalize: report

The megamerger of China National Chemical Corp. and Sinochem Group is expected to be revealed as soon as the coming weeks, after top executives completed preparatory work for the deal, Bloomberg reported, citing sources familiar with the matter.

The merger, in the works for at least two years, would produce an oil-to-chemicals giant with more than $100 billion of assets.

Chinese authorities have already granted preliminary approval for the merger and tasked Frank Ning, who heads both companies, with working out implementation details. It’s, however, not clear whether authorities have made a final decision on when to formally unveil the transaction.

Proceeds from any divestitures would help reduce the debt ChemChina took on through its record $43 billion purchase of Swiss pesticide producer Syngenta AG. Sinochem has more than 300 subsidiaries including Sinochem International Corp., a Shanghai-listed chemical trader, and phosphate producer Sinofert Holdings Ltd.

Sinochem has considered selling stakes in its five business units; petrochemicals, energy, agriculture, real estate and finance, Ning said in October 2017.

ChemChina’s operations, which encompass agrochemicals, rubber tires and chemical equipment, have expanded through acquisitions over the past few years.