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China: Considering mega-mergers of its Big-State oil companies

By  |  February 17, 2015

China is considering forging megamergers among its big state oil companies, seeking to create new national champions able to take on the likes of Exxon Mobil Corp. and produce greater efficiencies at a time of low prices, reported The Wall Street Journal on Tuesday.

Government economic advisers are conducting a feasibility study of options for consolidation of chinas 4 largest state own oil companies: CNPC, Sinopec, Cnooc and Sinochem. The possible mergers would be the latest consolidation of state companies blessed by the government as it tries to re-gear a slowing economy for a new phase of growth in President Xi Jinping administration.

“We want to create a big Chinese brand to better compete overseas,” a Chinese official said on Tuesday. “We want our own Exxon Mobil.”

No timetable has been set for a decision on whether or when to proceed with the various proposed mergers, said Chinese officials.

Full Content: The Wall Street Journal

 

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