BEIJING, Oct 14 (Reuters) - 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)