International News

BEIJING, Oct 14, (APP/AFP) – Beijing is planning a mega-merger of chemicals giants Sinochem and China National Chemical Corp. in a massive deal that would reshape the chemicals industry, Bloomberg News reported Friday. The companies together would control assets worth more than $100 billion, it said. The deal comes as authorities attempt a vast restructuring of China’s economy intended to weed out inefficient, debt-saddled firms by forcing them to combine with healthier rivals or face bankruptcy. But the transition faces hurdles, as politically-connected state-owned companies resist painful reforms, and Communist Party officials are reluctant to see large-scale layoffs that could lead to social unrest. China National Chemical Corp, also known as ChemChina, made a $43 billion takeover offer earlier this year for Swiss pesticide and seed giant Syngenta, in what would be by far the biggest-ever overseas acquisition by a Chinese firm.