15 january 2016 – beijing – china national chemical corporation ("chemchina"), one of china’s largest chemical companies, through its subsidiary chemchina petrochemical co., ltd, completed a strategic investment in mercuria energy trading, one of the world’s largest independent integrated energy and commodities companies. chemchina will become an important minority investor with a 12 percent stake in the shareholding structure of mercuria after this transaction.
the investment would add to chemchina’s already diverse portfolio as it continues to expand into advanced chemical materials and specialty chemicals, basic chemicals, oil processing, agrochemicals, tire and rubber products, and chemical equipment. for mercuria, the investment deepens the company’s already strong ties to china, where it has served as an important energy and commodities partner since the inception of the company.
chemchina and mercuria energy trading complement each other effectively with regard to knowledge offering and understanding of targeted markets. the strategy, organization, management, and corporate culture of the two organizations will serve to expand synergies on a global basis.
“an investment by chemchina in our company reaffirms mercuria’s business model as well as growth potential,” said marco dunand, chief executive officer of mercuria energy group. ”chemchina has important expertise and global reach. combined with mercuria’s experience, this will fuel and diversify our natural growth.”
"through the investment in mercuria energy trading, which has grown rapidly over the last decade, chemchina will expand further into the energy sector," said ren jianxin, chairman of chemchina. "mercuria has growth opportunities ahead in china and around the world. we highly respect and trust its outstanding management team. we look forward to working with its management and employees," added chairman ren.
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mercuria is one of the world’s largest independent energy and commodities groups. mercuria, primarily focused on energy, is present all along the commodities value chain with activities forming a balanced combination of commodities flows and strategic assets. in 2014, mercuria completed the acquisition of the j.p. morgan chase and co. physical commodities unit.
more than 1,000 people are operating from offices worldwide to sustain the mercuria’s extensive business reach in more than 50 countries with their market knowledge, diversity, and experience. mercuria's expertise covers all segments of the energy market, including associated environmental products, and extends to iron ore, dry-bulk freight, base metals and petrochemicals.
mercuria maintains sound infrastructure capabilities, including oil petroleum products storage terminals and production assets.
chemchina was established in 2004 on the basis of the affiliated enterprises of the former ministry of chemical industry. headquartered in beijing, chemchina is one of the largest chemical groups in the people’s republic of china with production, r&d and sales in 150 countries and regions. chemchina is ranked 265th among the fortune 500 companies and 9th in the global chemical industry. chemchina has successfully acquired nine industry-leading companies in france, the united kingdom, israel and italy and others, including pirelli, one of the world’s leading tire manufacturing enterprises, acquired in 2015 for 7.1 billion euros, and kraussmaffei, which was acquired for nearly 1 billion euros in jan 2016, a famous manufacturer of machinery for processing plastics and rubber in germany. chemchina petrochemical co., ltd, known as the subsidiary being in charge of oil processing and trading business of chemchina, has annual oil processing capacity of 25 million tons, and trading platforms in singapore, london and dubai. morgan stanley advised chemchina in the transaction.
