Sinopec to buy Wuhan Petroleum assets

China Petroleum & Chemical Corp. (Sinopec), Asia’s largest oil refiner by output, plans to sell its 46% stake in Sinopec Wuhan Petroleum Group Co., while at the same time buying back the unit’s assets, in the latest move to streamline its corporate structure. After the deal, Shengshida Investment will become the biggest shareholder of Sinopec Wuhan, according to the statement. Sinopec has been streamlining its sprawling corporate structure to eliminate competition within the group. In February 2006, Sinopec took four of its China-listed units private for a total of RMB14.3 billion (US$1.83 billion). The four units were Sinopec Qil Petrochemical Co., Sinopec Zhongyuan Petroleum Co., Sinopec Shengli Oil Field Dynamic Group Co., and Sinopec Yangzi Petrochemical Co. This came after Sinopec took two other listed units private in 2005. They are plastics company Sinopec Beijing Yanhua Petrochemical Co. and Sinopec Zhenhai Refining & Chemical Co. Meanwhile, Shengshida Investment is planning a backdoor listing through an asset sale to Sinopec Wuhan. (January 4, 2007)