Sinochem and ChemChina subsidiaries deny merger rumors

View of the headquarters of ChemChina in Beijing, February 4, 2016. [Photo/IC]

Several listed companies of Sinochem Group and China National Chemical Corporation (ChemChina) have denied rumors that the two State-owned chemical companies would merge, Shanghai Securities News reported on Monday.

"So far, ChemChina, listed companies and related shareholders have not received any written or spoken information about the rumored merger, and haven't announced the intent to any department or enterprise", Shenyang Chemical Co Ltd, a subsidiary of ChemChina said in a statement filed with the stock exchange.

ChemChina's other subsidiaries, Bluestar Adisseo Co, Qingdao Tianhua Institute of Chemistry Engineering Co Ltd, Aeolus Tyre Co Ltd, Sichuan Tianyi Science & Technology Co Ltd and Cangzhou Dahua Co Ltd, issued similar statements.

Sinochem Group's subsidiaries, including Jiangsu Yangnong Chemical Co Ltd, Nantong Jiangshan Agrochemical & Chemicals Co Ltd and Sinochem International Corp, issued similar statements as well.

However, a Bloomberg report quoted sources on Friday saying Sinochem Group and China National Chemical Corporation are going to be merged into one company.

Sinochem, founded in 1950, is China's biggest agricultural company by revenue with operations in fertilizers, seeds and agrochemicals. Its business also encompasses oil, real estate and non-banking financial services.

ChemChina is China's biggest chemical company with revenues of $45 billion in 2015. Its main businesses are chemicals, oil processing, tire and rubber products and chemical equipment.

The central government will make an effort to merge its biggest State-owned enterprise (SOE) groups and reduce their number this year to no more than 100, Peng Huagang, deputy secretary-general of the State-owned Assets Supervision and Administration Commission, said previously.

Several big SOE mergers have been announced so far, including train maker CNR-CSR, Baosteel Group-Wuhan Steel and COSCO-China Shipping.