Sinopec may become one of the largest shareholders of Sibur

The Russian Government Commission on Foreign Investment has approved its largest transaction, allowing the Chinese company Sinopec to buy up to 20% of Sibur. The company will receive half of the package in the near future for $1.34 billion, and the second one – as a result of the option in the next three years. Who of the current shareholders will reduce its share is not disclosed, but according to unofficial information, these will be Leonid Michelson and Gennady Timchenko. According to analysts, the transaction price is fair in view of the Sibur’s interest in the Chinese market.

The Government Commission on Foreign Investment has approved the purchase of the 20% stake in the largest Russian petrochemical company Sibur by Chinese Sinopec. The size of the package was a surprise for the market, the interlocutors of the Kommersant said that the size of the package would be approximately 10%. As the head of the Federal Antimonopoly Service Igor Artemyev reported, the transaction will take place in two stages. In the near future, the Chinese investor will buy the first 10% for $1.338 billion, and in the three years it will purchase the rest. The price of the second package hasn’t yet been determined, since it may change significantly depending on the market situation, said Mr. Artemyev.