BEIJING Oct 14 Chinese state-owned chemical
companies Sinochem Group and ChemChina are in discussions about
a possible merger to create a chemicals, fertiliser and oil
company with almost $100 billion annual revenue, three sources
familiar with the matter said.
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, globally more competitive industry players,
said the sources. The sources asked not to be identified because
they were not authorised to speak publicly about the matter.
Top management of the two firms held a meeting earlier this
week to discuss a potential merger, said one source directly
briefed on the matter.
(Reporting by Aizhu Chen; Additional reporting by Florence Tan;
Writing by Josephine Mason; Editing by Lincoln Feast)