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BP to Sell China's Petrochemical Business to JV Partner Sinopec for USD 1.68bn
Apr 28, 2017 (M&A Navigator via COMTEX) -- (C)2017 M2 COMMUNICATIONS

28 April 2017 - UK-based oil and gas major BP plc (NYSE: BP) has agreed to sell its 50% stake in Chinese petrochemicals joint venture Shanghai Secco Petrochemical Co Ltd. to China Petroleum and Chemical Corp.'s Gaoqiao Petrochemical Co Ltd subsidiary for a total consideration of USD 1.68bn (USD 2.18bn), the company said. Secco is currently owned by BP, Sinopec and Sinopec Shanghai Petrochemical Co Ltd., in which Sinopec holds a majority interest. Based in Shanghai, Secco is a producer of olefins, ethylene and propylene, together with polymers and other derivatives including polyethylene, polypropylene, acrylonitrile styrene, polystyrene, butadiene and other products. The transaction is subject to a number of regulatory approvals and other conditions, subject to which, it is currently anticipated to complete before the end of the year with the consideration payable in instalments. BP has had a petrochemicals business in China since the 1970s, first through technology licensing and then manufacturing joint ventures. In addition to Secco, BP has three other petrochemical manufacturing joint ventures in China: purified terephthalic acid production in Zhuhai; and acetic acid and other acetyls production with Yaraco in Chongqing and Byaco in Nanjing. In March 2015, BP began production from Zhuhai Unit 3, the world's largest single train PTA unit. BP is a partner of Sinopec in China as well as internationally on a variety of projects in both the upstream and downstream. Country: China Sector: Chemicals Target: Shanghai Secco Petrochemical Co/50% stake Buyer: Gaoqiao Petrochemical Co Vendor: BP Deal size in USD: 2.18bn Type: Divestment Financing: Cash Status: Agreed Buyer advisor: , , Comment:

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