SINOPEC subsidiary Gaoqiao Petrochemical has bought BP’s 50% stake in Shanghai SECCO Petrochemical Company for US$1.68bn.
SECCO produces ethylene and propylene, polymers, and derivatives such as polyethylene, polypropylene, acrylonitrile styrene, polystyrene and butadiene. Sinopec and Sinopec Shanghai Petrochemical Company, in which Sinopec holds the majority interest, currently own the remaining 30% and 20% stakes in SECCO.
“This decision aligns our petrochemicals business in China with our global focus on areas where BP has leading proprietary technologies and competitive advantage. China is a key region for our chemicals business and BP will continue to look for opportunities to build on our position in the country,” said Rita Griffin, chief operating officer, BP Global Petrochemicals.
The deal is expected to be completed by the end of the year, subject to regulatory approvals.
It is the second major acquisition for Sinopec in 2017. It recently bought 75% of Chevron South Africa and 100% of Chevron Botswana for US$900m.
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