19 Aug 2009 14:43

Sinopec Group takes over Addax for $7.56 bln

Shanghai. August 19. INTERFAX-CHINA - China Petrochemical Corp. (Sinopec Group), the country's second-largest oil company, has completed its takeover of Switzerland-based Addax Petroleum Corp. for CAD 8.32 billion ($7.56 billion), Sinopec Group announced on Aug. 18.

The deal is the largest Chinese takeover of overseas oil and gas assets to date, Sinopec Group said.

Addax, which is listed on the London and Toronto stock exchanges, has oil and gas exploration projects in West Africa and the Middle East. As of the end of the second quarter, the company's annual crude oil production capacity had grown to about 7 million tons, though its capacity is expected to grow to 10 million in the near future.

Addax reported business revenues of $3.76 billion and a net profit of $784 million in 2008.

Sinopec Group's takeover of Addax started in February. By June, the two companies reached an agreement that Sinopec Group would acquire Addax's 157.6 million outstanding common shares for CAD 52.80 ($47.70) per share. The Chinese government approved the takeover on Aug. 6, Sinopec Group said.