Sinochem snaps up rival

China's largest fertilizer producer Sinochem Corp has paid 1.6 billion yuan for a 51 percent stake in Zhejiang chemicals maker Juhua Group Corp.

The two companies signed the agreement on Wednesday, according to a statement from Juhua Group's listed arm Juhua Co Ltd. The deal gives Sinochem control of the fifth largest Chinese basic chemicals maker in Quzhou, Zhejiang Province.

As fluoro-chemical consolidations accelerate, many smaller firms are selling to larger rivals like Sinochem.