The ChemChina-Sinochem merger, expected to be announced soon — despite the companies insisting that no such plan is in place — is poised to alter the landscape of China’s chemicals industry. It’s the ultimate move in a rush of consolidations that President Xi Jinping’s administration has pursued to shake up debt-laden state enterprises.
“It’s the final piece of the jigsaw puzzle,” says Graham Dickinson, Managing Director of UK-based Pro-Tekt Consultants, which advises the crop protection and crop production markets across Europe.
The new mega-company will quickly surpass DowDuPont to become the world’s largest chemical group, which is anticipated to have an annual revenue of over $110 billion. This would place the combined group, with units spanning seeds to iron ore trading to oil, at the forefront of the consolidating global agricultural chemicals sector.