$112Bn Sinochem-ChemChina merger dismissed

Sinochem denied, through its CEO, merger plans with its competitor ChemChina, dismissing rumors on ongoing talks between the top managements of the two Chinese state-owned groups. A merger would probably jeopardize the acquisition of Syngenta by ChemChina ($44bn). The takeover, indeed, has just been approved by the Committee on Foreign Investment (CFIUS) and a change in the corporate structure would have implied a new approval process for the deal. There has recently been a significant number of mergers between state-owned Chinese companies. For instance, Cofco has absorbed Chinatex and China National Cotton Reserves Corp. has merged with China Grain Reserves Corp. (Sinograin), creating a $213bn group. (Source FT)