BEIJING Oct 17 Sinochem International Corp
, a unit of state-owned Sinochem Group, said on
Monday it has received no information regarding a proposed
merger of its parent company with rival ChemChina.
The two state-owned chemical companies are in discussions
about a possible merger to create a chemicals, fertiliser and
oil giant with almost $100 billion in annual revenue, three
sources familiar with the matter told Reuters last week.
"Until now, this company's controlling company Sinochem
Group and controlling shareholder Sinochem Group nor this firm
have received any written or oral information from any relevant
government department about this rumour," said Sinochem
International in a statement to the Shanghai stock exchange.
Sinochem International trades and distributes rubber, fine
chemicals, agrochemicals and other products. Its shares soared
10 percent on news of the merger talks last week.
The company added that neither it nor Sinochem Group had
expressed such an intention to any government department.
"This company currently has no information that should have
been disclosed that has not been disclosed," it added.
The merger 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, sources said.
Top management of the two firms are said to have held a
meeting last week to discuss the potential merger and both firms
have started due diligence work looking into each other's
financial details and business segments, sources said.
The talks come as China National Chemicals Corp, as
ChemChina is officially known, finalises a $43 billion takeover
of Swiss pesticides and seed group Syngenta. That deal
would be China's largest-ever foreign investment.
A ChemChina spokesperson has denied the merger plans.
(Reporting by Dominique Patton; Editing by Lincoln Feast)