Sinopec acquires 10% stake in Sibur
Russian gas company Sibur and China Petroleum & Chemical Corporation (Sinopec), announced the completion of Sinopec’s 10% minority investment in SIBUR as a strategic investor. Sinopec will have the right to nominate a representative for Sibur’s Board of Directors as a strategic investor.
“Sinopec’s 10% minority investment in Sibur not only deepens the cooperation between the two companies, but also represents an active implementation of China’s “One Belt, One Road” policy. SIBUR’s vertically-integrated upstream and petrochemicals business model is highly complementary with Sinopec’s businesses. This transaction is in-line with our objective to strategically expand our petrochemical business overseas. Our continued partnership will help diversify and secure Sinopec’s long-term sourcing of petrochemical products,” commented Wang Yupu, Chairman of Sinopec.
“The decision of Sinopec, a major player in the global petrochemical market, to acquire a stake in SIBUR confirms the success of the management’s effort to transform the Company into a gas processing and petrochemical leader and comes as a recognition of SIBUR’s high growth potential. Getting Sinopec on board as a strategic shareholder will help to build the synergy required to bring SIBUR’s growth to a brand new level,” said Leonid Mikhelson, SIBUR’s Chairman of the Board.
In September 2015, SIBUR and Sinopec signed a strategic partnership agreement during a state visit by Vladimir Putin, President of the Russian Federation, to Xi Jinping, the President of the People’s Republic of China. The successful completion of the transaction is an important step in the development of the strategic cooperation between the two countries.
The two parties will continue the dialogue to widen the scope of collaboration. As a next step, both companies are considering the participation of Sinopec in the Amur Gas Chemical Complex construction project as a strategic partner with SIBUR. Sinopec’s integrated upstream and petrochemical capabilities will make a positive impact and benefit both parties.