China's largest fertilizer producer Sinochem Corp has paid 1.6
billion yuan 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.
The purchase also gives Sinochem control on Shanghai-listed
Juhua Co, as Juhua Group controls almost 57 percent of the listed
unit.
Juhua Co fell more than 4 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.
(China Daily November 30, 2007)
