ChemChina buys 12 percent of energy trader Mercuria

The Chinese state-owned chemical company expands into energy sector after buying shares in the Swiss trader

Ren Jianxin, Chairman of ChemChina. Ren said Mercuria has growth potential both in China and internationally

The China National Chemical Corporation (ChemChina) has just finalised its strategic investment in Mercuria Energy Trading. The move will see ChemChina become a major minority shareholder, with a 12 percent stake in the Swiss energy trader.

The deal is mutually beneficial for both companies, with ChemChina able to diversify its investment portfolio even further. This will help it to expand its reach within the energy sector, while helping Mercuria to bolster its already strong position in China.

ChemChina has been buying shares in numerous companies across Europe

“An investment by ChemChina in our company reaffirms Mercuria’s business model as well as growth potential”, said Marco Dunand, Chief Executive Officer of Mercuria Energy Group. ”ChemChina has important expertise and global reach. Combined with Mercuria’s experience, this will fuel and diversify our natural growth.”

ChemChina has been buying shares in numerous companies across Europe in order to help it manufacture and trade everything from pesticides and vitamins to rubber and plastics.

“Through the investment in Mercuria Energy Trading, which has grown rapidly over the last decade, ChemChina will expand further into the energy sector”, said Ren Jianxin, Chairman of ChemChina. “Mercuria has growth opportunities ahead in China and around the world. We highly respect and trust its outstanding management team. We look forward to working with its management and employees.”

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