On the evening of March 31, 2021, the official website of the State-owned Assets Supervision and Administration Commission of the State Council showed that after the approval of the State Council, Sinochem Corporation and China National Chemical Corporation implemented a joint reorganization.
Sinochem Group and ChemChina are the two giants in China's chemical industry. Sinochem Group ranks 109th on the Fortune Global 500 list and ChemChina ranks 164th. According to the statistical caliber of "Fortune", the total assets after the merger of the two companies are approximately US$199.959 billion (approximately RMB 1.31 trillion), and the total revenue can reach US $146.143 billion (approximately RMB 957.354 billion).
In other words, after the reorganization of the two central enterprises, a giant company with total assets of nearly 1.6 trillion yuan and 200,000 employees will be formed.
After the establishment, the new company's business scope covers eight major fields, including life sciences, material sciences, basic chemicals, environmental sciences, tires and rubber, machinery and equipment, urban operations, and industrial finance.
Sinochem Group has five business divisions: energy, chemical industry, agriculture, real estate and finance. It is a leading integrated operator of the petroleum and chemical industry, agricultural inputs (seeds, pesticides, fertilizers) and modern agricultural services. Urban development and operation and non-bank financial fields have strong influence.
ChemChina is the largest chemical company in my country, with six business segments including new chemical materials and specialty chemicals, agrochemicals, petroleum processing and refining products, rubber tires, chemical equipment, and scientific research and design. This company headquartered in Beijing has production and R&D bases in 150 countries and regions around the world, as well as a complete marketing network system.
ChemChina’s main business includes six business sectors including new chemical materials and specialty chemicals, agrochemicals, petroleum processing and refining products, rubber tires, chemical equipment, and scientific research and design.
At present, there are many listed companies under the two central enterprises, including Sinochem International, Sinofert, China Jinmao, Yangnong Chemical, Fengshen, Adisseo, Shenyang Chemical, Cangzhou Dahua, Claus, Haohua Technology, etc. , Adama A, Quan Yin Hi-Tech, etc.
The beginning and end of the reorganization
In recent years, rumors of the merger between ChemChina and Sinochem Group have been spread many times. In June 2018, Ren Jianxin, chairman of ChemChina, announced his retirement, and Ning Gaoning, chairman of Sinochem Group, began to concurrently serve as chairman and party secretary of ChemChina. At that time, many people in the industry believed that the "merger of the two countries" would officially begin, but the two parties did not make a statement about the merger.
In September 2019, Ning Gaoning stated that the two parties are "cooperating." At the signing ceremony of the State-owned Assets Supervision and Administration Commission and the Shanghai Municipal Government to deepen cooperation and jointly promote the implementation of the national strategy, Ning Gaoning stated that Sinochem and China National Chemical Corporation are vigorously promoting the cooperation between the two countries. Innovation ability and industrial status.
It is not until 2020 that the "merger of the two countries" has begun to enter the substantive stage of operation.
In January 2020, Sinochem Group announced that the main assets of its agricultural sector will be injected into the Syngenta Group established in 2019 under China National Chemical Corporation. At the same time, ChemChina also transferred all of its shares in Syngenta Co., Ltd. and 74.02% of shares in Adama Co., Ltd. to Syngenta Group.
This means that the "merger of industrialization and industrialization" has finally begun in the agricultural sector.
In the same month, Sinochem International, Adisseo, Haohua Technology, Aeolus, Claus and other listed companies all issued announcements stating that after receiving a letter from the actual controller, Sinochem is planning a strategic reorganization with ChemChina, and the reorganization plan is specific. The content and its implementation are still subject to relevant approval and supervision procedures.
In June 2020, the agrochemical company Syngenta Group announced the formal completion of the reorganization, marking the successful merger of the agrochemical sectors of ChemChina and Sinochem.
According to the information on Sinochem’s official website, in the future, Sinochem and ChemChina will actively and steadily advance the joint reorganization in accordance with relevant laws, regulations and requirements of regulatory agencies.
