Bulletin: Sinochem-ChemChina Asset Transfer: A Step Closer To Merger

HONG KONG (S&P Global Ratings) Jan. 9, 2020--S&P Global Ratings said today that the consolidation of agricultural assets between Sinochem Group and China National Chemical Corp. Ltd. (ChemChina, BBB/Stable/--) into new entity Syngenta Group signals more asset restructurings between the two companies going forward, paving the way to ultimate merger. Given that the size of assets transferred from Sinochem Group to ChemChina is insignificant to both companies, the ratings on both Sinochem Group's core subsidiary Sinochem Hong Kong (Group) Co. Ltd. (A-/Stable/--) and ChemChina remain unchanged. The rating on Syngenta Group's subsidiary Syngenta AG (BBB-/Stable/A-3) is also unaffected, given that its ultimate parent is ChemChina. However, we may reassess Sinochem Hong Kong's status as a core subsidiary of Sinochem Group

...January 8, 2020 HONG KONG (S&P Global Ratings) Jan. 9, 2020--S&P Global Ratings said today that the consolidation of agricultural assets between Sinochem Group and China National Chemical Corp. Ltd. (ChemChina, ###/Stable/--) into new entity Syngenta Group signals more asset restructurings between the two companies going forward, paving the way to ultimate merger. Given that the size of assets transferred from Sinochem Group to ChemChina is insignificant to both companies, the ratings on both Sinochem Group's core subsidiary Sinochem Hong Kong (Group) Co. Ltd. (A-/Stable/--) and ChemChina remain unchanged. The rating on Syngenta Group's subsidiary Syngenta AG (###-/Stable/A-3) is also unaffected, given that its ultimate parent is ChemChina. However, we may reassess Sinochem Hong Kong's status as a core subsidiary of Sinochem Group if we see further weakening in the company's function as the only offshore investment and financing platform for the group. This includes further reduction in...

Bulletin