CNOOC Controls Haihua Group      

China National Offshore Oil Corporation (CNOOC), the third largest oil giant in China, will acquire 51% state-owned interest in Shandong Haihua Group Co., Ltd (Haihua Group) at no cost, through its wholly-owned subsidiary CNOOC Refining & Petrochemical Company Ltd., according to Haihua Group's listed arm Shandong Haihua Company Ltd. (SZ: 000822) released on September 11th.
    An equity transfer agreement was signed on September 3rd between CNOOC Refining & Petrochemical and the State-owned Assets Supervision and Administration Commission of Weifang (SASAC Weifang) that is the majority of Haihua Group.
    Under the agreement, CNOOC will invest RMB7 billion in the next three years in Haihua Group to add its refining capacity of 5 million tons per year in Shandong province.
    Haihua Group, located in Weifang, Shandong province, is a leading ocean chemical processing company in China, focusing on salt chemicals, coal chemicals and petrochemicals. Through the transaction, Haihua Group intends to gain opportunities of extending its existing refining business.
    With the acquisition, CNOOC will strengthen its presence in petroleum downstream sector and become more integrated.
    The deal is subject to approval by the State-owned Assets Supervision and Administration Commission of China and China Securities Regulatory Commission.
    Upon completion of the deal, the equity split of Haihua Group is 51: 29.4: 19.6, between CNOOC Refining & Petrochemical, SASAC Weifang and China Haohua Chemical (Group) Corporation, a subsidiary of China National Chemical Corporation (ChemChina).
   Haihua Group holds the 40.34% equity in Shandong Haihua Company Ltd.