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Local oil company Sinopec has denied a recent domestic report that it will pay US$3.4 billion to acquire the oil and gas division of ABB, a worldwide power and automation technology giant.
"We have no plans to buy ABB's oil, gas and petrochemical division at present," a Sinopec spokesman told China Daily yesterday.
The report followed the Zurich-based ABB's decision at the end of last month to divest its oil and gas division next year as part of a restructuring plan to reduce its huge debt.
Some companies have shown interest in the division, according to ABB, but it has not revealed any names.
ABB bought US$100 million of Sinopec's shares in October 2000 when the Chinese company went public on Hong Kong, New York and London simultaneously.
"I can not comment on the report now," Paul Chan, vice-president of ABB's China operation, said yesterday.
"But it is unlikely that the oil and gas division will be sold to only one company as it covers a wide range of different segments."
The division's operation ranges from modification and maintenance to floating production, subsea systems and drilling production equipment, according to ABB.
"I think there will be a slew of companies to take over the oil and gas division as a whole," Chan said.
Under the restructuring plan released last month, ABB has reorganized its five business divisions into three - automation technology, power technology and oil and gas.
ABB last week gained approval from the European Commission for the sale of its finance business to GE Commercial Finance.
(China Daily November 12, 2002)
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