PetroChina to "Swallow" SPC European refinery acquisition will commence

After each journalist Shing Chunlai completed a 1.02 billion dollar takeover of 45.51% per cent of the Singapore Oil Company (SPC), PetroChina announced yesterday it would launch a mandatory offer to buy the remainder of the SPC. In addition, PetroChina is also in talks with the British Rexroth Group, plans to invest in the group in Scotland, the Grange Portsmouth refinery.　　It will be the second wave of overseas refinery acquisitions to be launched by PetroChina in the short term. May 24, PetroChina bought a stake in spc45.51% from Keppel with 1.02 billion of billions of dollars, focusing on refining and downstream operations.　　Yesterday, China Oil announced that the two sides of the sale of the prerequisite has been reached, and the acquisition was completed yesterday, PetroChina will also under the Singapore Acquisition Act, the price of 6.25 yuan per share of the purchase of the remaining shares of Singapore oil. As early as 2002, Keppel began looking for a buyer for the SPC, as crude oil prices continued to be low and refinery profits were only maintained at break-even.　　However, in 2006 the oil market was strong, refining profits reached an all-time record, Keppel the idea of selling Spc.　　With the economic crisis sweeping the world and the oil market again in a slump, it is clearly a good time for Keppel to choose to sell SPC at this time.　　In this regard, Chinese oil sources said that in the past, the company's overseas mergers and acquisitions mainly in the upstream exploration and development, but for building a comprehensive, international energy company strategy considerations, must have midstream and downstream related business mergers and acquisitions. PetroChina's upstream exploration business is involved in the world, but there are few refineries overseas, and there is an urgent need to establish refineries and downstream business networks in some foreign countries.　　Singapore, with its fine investment climate, port facilities, oil refining and trade markets, is the best choice.　　Qiu Xiaofeng, an analyst with China Merchants Securities, said the acquisition could significantly expand the downstream business of PetroChina and enhance its influence in the Asia-Pacific oil market. The people said they are not aware of the details of the progress of PetroChina's discussions with the British company to invest in a Scottish refinery.