BIZCHINA / News |
Sinochem snaps up rivalBy Zhang Qi (China Daily)
Updated: 2007-11-30 10:41 China's largest fertilizer producer Sinochem Corp has paid 1.6 billion yuan (US$216.74 million) for a 51 percent stake in Zhejiang chemicals maker Juhua Group Corp. The two companies signed the agreement on Wednesday, according to a statement from Juhua Group's listed arm Juhua Co Ltd. The deal gives Sinochem control of the fifth largest Chinese basic chemicals maker in Quzhou, Zhejiang Province. As fluoro-chemical consolidations accelerate, many smaller firms are selling to larger rivals like Sinochem. The Zhejiang provincial government, a major stakeholder in Juhua Group, wants to focus State-owned assets in core areas.
Juhua Co fell more than four percent to 12.22 yuan yesterday, despite a sharp rise on the Shanghai Composite Index of 4.16 percent. The deal will enhance the company's competitiveness in the fluoro-chemical industry, and it expects to become a leader in the sector in China, according to Juhua Co's statement. Sinochem opened its Ganzhou Fluoro-chemical Industrial Base in Jiangxi Province last month, merging with local fluoro-chemical manufacturers Xingguo Zhongying Mining Co Ltd and Jiangxi Sanmei Chemicals Co Ltd. |
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