One of Asia’s largest crude oil and petrochemical companies, Sinopec has bought over US$506m worth of ‘building blocks’ from Asset Management Company, a wholly-owned subsidiary of China Petrochemical Corporation. Sinopec will eventually hold ownership of all the assets of Asset Management Company.

Beijing firm Guantao’s founding partner Cui Liguo and partners Fu Sanzhong and Hong Yuhao represented the petrochemical company on the deal. The target includes all assets of six institutional affiliates of the Asset Management Company, and 100% equity interest in its five subsidiaries. Four of these entities are being restructured into one-person limited liability companies.

“We only had two-and-a-half months to complete this transaction. The fact that these entities were scattered nationwide and that there were requirements for enterprise restructuring and housing reforms [made] the transaction quite challenging,” said Cui.

Sinopec also engaged Herbert Smith’s Tom Chau, who has acted for the company on many deals, including its US$3.4bn triple IPO in Hong Kong, New York and London.

Sinopec’s acquired assets from Asset Management Company

  • Beijing Chemical Institute
  • Shanghai Research Institute of Petrochemical Technology
  • Fushun Petrochemical company
  • Qingdao Safety Engineering Institute
  • Xingpu
  • Qingdao Sinosun Certification Centre
  • Fushun Huanke Petrochemical
  • Material Equipment company

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