China BlueChemical strengthens its fertilizer position in Shanghai

28 December 2012 07:44  [Source: ICIS news]

SINGAPORE (ICIS)--China BlueChemical will strengthen its position in Shanghai’s fertilizer industry, following the completion of the acquisition of Shanghai Qionghua, a Shanghai fertilizer trading company, a market source said on Friday.

CNOOC Fudao, a wholly-owned subsidiary of China BlueChemical, has entered into an equity transfer agreement with Shanghai Shenxin, in which the latter has agreed to sell its 9.074% equity interest in Shanghai Qionghua  to CNOOC Fudao, China BlueChemical announced on 24 December on the Hong Kong Stock Exchange (HKEx).

The total consideration for the acquisition is about yuan (CNY) 3.7m ($0.6m), according to a statement filed to HKEx.

As CNOOC Fudao already owns 90.926% of the shares in Shanghai Qionghua, following the completion of the acquisition, Shanghai Qionghua will become a wholly-owned subsidiary of CNOOC Fudao.

The acquisition of Shanghai Qionghua is expected to help China Bluechemical increase its sales in Shanghai and the neighbouring areas, the market source said.

China BlueChemical engages in the production of mineral fertilizers, methanol and other related chemicals. CNOOC Fudao focuses on the production and sale of urea.

($1 = CNY6.24)

By: Viola Pan
+65 6780 4359

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