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FACTBOX-How would a ChemChina-Sinochem merger look?
October 14, 2016 / 5:00 AM / a year ago

FACTBOX-How would a ChemChina-Sinochem merger look?

(Updates to add staff numbers)
    BEIJING, Oct 14 (Reuters) - Chinese state-owned chemical
companies Sinochem Group and ChemChina are in discussions about
a tie-up to create a global chemical, oil and agricultural giant
with almost $100 billion in annual revenue, three sources
familiar with the matter said.
    Measured by revenue and profits, Sinochem is much larger
than its rival ChemChina, which is finalising a $43 billion
takeover of Swiss pesticides and seed group Syngenta.
That deal would be China's largest-ever foreign investment.
    
    Here are some key facts about how a merged entity would
look:
    Based on 2015 annual reports and measured in U.S. dollars:
    
             ChemChina    Sinochem    Combined     Syngenta
 Revenue     $38.99       $60.4       $99.4        $13 billion
             billion      billion     billion      
 Net profit  $17.55       $483.6      $501         $1.64
             million      million     million      billion
 Assets      $55.78       $54.6       $110.4       $18.98
             billion      billion     billion      billion
 Workforce   more than    46,225      more than    28,000
             140,000                  186,000      
    
    CHINA NATIONAL CHEMICAL CORP (CHEMCHINA):
    Makes everything from refined oil products, medical latex
gloves to insecticides and tyres across six business units:
advanced chemical materials and specialty chemicals, basic
chemicals, oil processing, agrochemicals, tire and rubber
products and chemical equipment. 
    It controls eight A-share listed companies.    
    Petroleum is its largest business, accounting for half of
total 2015 revenue from nine refineries with combined annual
crude oil processing capacity of 25 million tonnes. 
    New chemical materials and special chemicals was the second
biggest business with 51.8 billion yuan ($7.77 billion) in
revenue; Followed by, agrochemicals: 27.1 billion yuan ($4.06
billion); rubber products: 24.46 billion yuan ($3.67 billion);
basic chemical products and equipment: 11 billion yuan ($1.65
billion).
    
    SINOCHEM:

    One of China's four state oil companies, the nation's
biggest fertilizer, seed and agrochemicals company and a major
chemical service company. It also has real estate and
non-banking financial service businesses.    
    Energy was one of its largest businesses, with revenue of
25.4 billion yuan ($3.8 billion) last year.
    Controls 240,000-barrel-per-day Quanzhou refinery and owns a
minority stake at the 50,000-bpd independent Hongrun
Petrochemical Corp; Sinochem plans to expand into petrochemicals
at its Quanzhou plant by adding a large ethylene complex.
 
    Owns production oil and gas production assets in Brazil,
Colombia and the Middle East, and shale field in Texas.

    SYNGENTA:
    Produces herbicides, insecticides, fungicides and seeds,
operating in 90 countries.
    Europe, Africa and Middle East was its largest region,
generating $3.88 billion in revenue last year, just under a
third of the group total.
($1 = 6.6685 Chinese yuan renminbi)

 (Reporting by Muyu Xu and Josephine Mason; Editing by Lincoln
Feast)

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