ChemChina discussing merger with Sinochem
The deal has been proposed by China's central government as part of its efforts to slash the number of state-owned companies and create larger, more competitive global industry players, said the sources.
"The government has given the mandate to let Sinochem lead in this potential merger with ChemChina," said the source.
A second source familiar with the matter said both firms have started due diligence work looking into each other's financial details and business segments.
While still at an early stage, the talks come as China National Chemicals Corp, as ChemChina is officially known, finalizes a $43 billion takeover of Swiss pesticides and seed group Syngenta. That deal would be China's largest-ever foreign investment.
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