Talks on $100b Merger

Chinese state-owned chemical companies Sinochem Group and ChemChina are in discussions about a possible merger to create a chemicals, fertilizer and oil giant with almost $100 billion annual revenue, three sources familiar with the matter said, CNBC reported. The deal has been proposed by China’s central government as part of its efforts to slash the number of state-owned companies and create larger, more competitive global industry players, said the sources demanding anonymity. Top management of the two firms held a meeting earlier this week to discuss a potential merger, but declined to comment.