Sinopec buys into SIBUR during Putin state visit

Tom Brown

03-Sep-2015

(updates throughout)

LONDON (ICIS)–China state energy and chemicals major Sinopec has agreed to acquire a stake in SIBUR during a state visit to China by Russian premier Vladimir Putin, the petrochemicals producer said on Thursday.

Subject to approvals by regulators on both sides, the stake represents a tightening of the bond between Russia and China, SIBUR said.

A SIBUR spokesperson declined to disclose the size of the stake or the scale of investment, but stated that SIBUR chairman Leonid Mikhelson will remain the group’s largest stakeholder.

Prior to the Sinopec deal, SIBUR was 50.2%-owned by Mikhelson, and 21.3%-held by deputy management board chairman Kirill Shamalov, who acquired a 17% stake in the business from Gennady Timchenko when the Novatek non-executive director’s name was added to the US’s list of key non-governmental Russian sanction targets in September 2014.

Timchenko retained a 15.3% interest in the company, with the remaining 13.2% held by current and former managers of SIBUR Holding.

“The Chinese market is one of the key… markets for SIBUR where the Company exports polymers, rubbers and organic synthesis products. In 2014, SIBUR’s revenue from sales in China totalled 8% of its total revenue,” the spokesperson said.

SIBUR and Sinopec agreed a joint venture deal in May 2014 to develop a 50,000 tonne/year butadiene nitrile rubber (NBR) plant near Shanghai, following Sinopec taking a 25% + one share stake in SIBUR’s
Krasnoyarsk, Russia, NBR plant in August 2013.

“SIBUR’s vertically-integrated upstream and petrochemicals business model is highly complementary with Sinopec’s businesses. This transaction is in line with our objective to strategically expand our petrochemical business overseas,” said Sinopec chairman Wang Yupu.

“Our continued partnership will help diversify and secure Sinopec’s long-term sourcing of petrochemical products,” he added.

“We are excited to have Sinopec as our strategic shareholder, whose participation will reinforce SIBUR’s expertise to maximize the efficiency of new large-scale projects and raise the company to a new level,” Mikhelson said.

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?