它 就 停 住 ' 装 笑 '

Chinese drillers oil the deal wheels

Sinopec' s offer for Addax
hints at increasing comfort
with pursuing public firms

 

 

 

 

By launching what, if completed, would be China' s biggest foreign takeover ever, China Petrochemical Corp. , the Chinese state oil company also known as Sinopec, is betting that oil prices will keep rising. It also is betting on its ability to extract oil in politically sensitive fields in Nigeria and Iraq.
The deal follows PetroChina' s agreement in May to buy Singapore Petroleum for $2.25 billion and Cnooc' s oil-field-services arm snapping up Norway' s Awilco Offshore last July for $2.5 billion. Taken together, the deals also show that Chinese companies may be getting more comfortable with pursuing publicly traded companies, which can bring unwanted attention and scrutiny, most famously seen in Cnooc' s failed $18.5 billion attempt in 2005 to acquire Unocal of the U.S. Cnooc withdrew that offer after the deal got caught up in a firestorm of congressional opposition to a Chinese company acquiring a large U.S. oil company.
The Sinopec deal will shake up the standings in China' s banking world. It will propel Sinopec' s adviser, Credit Suisse Group, to the top tier of the rankings of investment banks by the volume of Chinese mergers and acquisitions advised on.
Of course, with just $21.7 billion of M& A deals in China this year, including the Sinopec bid, a single big deal can turn the league tables upside down. Chinalco' s advisers on the failed Rio Tinto deal -- Nomura Holdings, Blackstone Group, China International Capital Corp., or CICC, and J.P. Morgan Chase -- know that well. After sitting on the top slots for most of this year, they will likely be playing catch-up for the rest of the year.
&mdash Rick Carew
Translating
Xstrata' s Letter
Xstrata wrapped its arms around Anglo American on Wednesday, officially commencing a so-called bear hug, or semihostile takeover, of its fellow miner. Responding to Anglo American' s summary rejection of its earlier overture, Xstrata made public the letter its Chief Executive Mick Davis sent to Anglo American' s chairman, Sir Mark Moody-Stuart, and chief executive, Cynthia Carroll. Below are highlights of the delicately worded letter, with some other bullet points Xstrata released for good measure, and Deal Journal' s translations:
" In the past we have only made informal approaches to discuss a potential transaction, but given recent market and industry developments, we are firmly of the opinion that the combination warrants detailed consideration."
Translation: Every time we approached you quietly in the past you told us to get lost. Now we are going to get your shareholders to consider this even if you won' t.
" We believe the transaction will create positive market momentum from which we will be able to secure additional capital from traditional and new investors to strengthen the balance sheet, support further growth and resume regular dividend payments."
Translation: Anglo shareholders, do a deal with us and you' ll get back the precious dividend that was so ungraciously taken away from you-an act that, by the way, helped embolden us to make this approach.
" Through acquisitions and a continuous programme of asset improvement initiatives, Xstrata has built a portfolio of assets which generate similar earnings to the Anglo American portfolio and which enjoy a similar reserve/resource life."
Translation: We don' t appreciate you bad-mouthing our assets. You say ours would " dilute" your exposure to platinum and diamonds, but you know what-those aren' t exactly stellar earners these days either.
" Xstrata' s [$1 billion] synergy estimate does not assume nor envisage any workforce retrenchments at the combined group' s South African operations and Xstrata believes that South Africa would be a net beneficiary of the transaction."
Translation: We know we can' t get this deal off the ground without the approval of the authorities in South Africa, so we will bend over backward to get it. As for protecting jobs in other countries, don' t be so sure.
" Xstrata' s operational management has a strong track record of best-in-class cost performance, delivering year-on-year average real cost savings of 1% per annum from 2003 to 2008, compared to an average real cost increase at its FTSE100 mining sector peers of 2% per annum over the same time period."
Translation: We don' t want to be impolite because we are trying the best we can to keep things friendly, but our management is better than yours even though we promise we have no preconceived notions of who should run the combined company, anyone is fine for CEO as long as his name is Mick Davis.
&mdash Dana Cimilluca

Sinopec-Addax: The Dragon Flexes Its Deal-Making Muscles

 

 

 

 

PetroChina Asset Starts Testing Investor Appetite for IPO

Universal Terminal Tests Investor Appetite for up to $770 Million IPO

 

 

 

 

State-owned PetroChina, which is China&rsquo s biggest listed oil firm by capacity, is looking to sell some portion of its 35% stake in Universal Terminal &lsquo s IPO, one of the people said. The company, which is one of the largest petroleum-products storage operators in Asia Pacific, aims to list on the Singapore stock exchange as a trust by end of this year.
Universal Terminal is majority-owned by Singapore billionaire Lim Oon Kuin&rsquo s Hin Leong Group. Apart from the oil-storage operations, the group is also trades oil, ships fuel supply and operates a fleet of tankers.

from china big blue techs to china big blue oil giant again in 2022

PetroChina Inks Fuel Deals

 

 

 

 

Creating a global oil trading network can help China lessen its dependence on the Middle East&mdash which currently provides about 50% of its crude oil&mdash and also help it sell crude and oil products in distant parts of the world when transport costs make it uneconomic to bring the oil back to China, analysts say.
Storage in North America and Europe would ease concerns in China over its energy security, especially as the bulk of its imports are shipped through the choke point of the Strait of Malacca, near Singapore.

 

 

Covid-19 Vaccines Linked to Menstrual Cycle Changes