Sinopec/Addax - A New Stage In Chinese M&A

The Chinese deal-machine stepped up a notch on June 24 with the news that China Petroleum and Chemical Corporation (Sinopec) has agreed to pay CAD8.3bn (US$7.2bn) for Swiss-Canadian independent Addax Petroleum. Sinopec will pay CAD52.80 per share in cash for Addax, a 47% premium on Addax's closing price in Toronto on June 5, the day before Addax announced that it was in talks with potential bidders. The deal represents the largest foreign acquisition by a Chinese company to date, surpassing China National Petroleum Corporation's (CNPC) US$4.18bn takeover of PetroKazakhstan in 2005, and hands Sinopec control of 42.5mn barrels (bbl) of

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