Recently, the State New Office held a press conference focusing on strengthening core functions, enhancing core competitiveness, and better achieving high-quality development of central enterprises. Li Bing, deputy secretary-general of the State-owned Assets Supervision and Administration Commission of the State Council, said that in 2023, the State-owned Assets Supervision and Administration Commission of the State Council will further increase the restructuring and integration of central enterprises. In the next step, the State-owned Assets Supervision and Administration Commission of the State Council will follow the relevant requirements of the deepening and upgrading of the reform of state-owned enterprises, and promote the restructuring and integration work to further deepen and strengthen state-owned enterprises.

  At the same time, Xie Xiaobing, head of the property rights Administration of the State-owned Assets Supervision and Administration Commission of the State Council, said that in the early stage, the state-owned Assets Supervision and Administration Commission has promoted the value realization of listed companies into the performance evaluation system of listed companies, on this basis, the market value management effect will be included in the assessment of central enterprise leaders, and the central enterprise leaders will be guided to pay more attention to the market performance of listed companies. Timely through the application of market-oriented means to increase holdings, buyback and other means to convey confidence, stabilize expectations, increase cash dividends, and better return investors.

  Multiple policies point to a common direction, which also stimulates more and more central enterprises to carry out market value management through asset restructuring, mergers and acquisitions, and the introduction of strategic investors. With the warm wind blowing in the market, the central state-owned enterprises listed companies are becoming more and more active in the M&A and reorganization market. In recent years, the acquisition of state-owned enterprises in the chemical market is numerous, including many well-known enterprises such as Wanhua Chemical, Beixin Building Materials, Juhua Shares, and “three barrels of oil”, which have received mergers and acquisitions in a rush, and have also allowed a huge amount of funds to flow to private enterprises.

  Yunnan Yuntianhua Co., Ltd. intends to acquire 93.89% of the equity of Yunnan Dawei Ammonia Co., LTD., which is held by Yunnan Coal Chemical Group Co., Ltd. in cash by way of agreed transfer.

  Juhua and Feiyuan Chemical held an equity cooperation signing ceremony in Zibo City, Shandong province. Previously, Juhua shares announced that it intends to purchase some old shareholders of Zibo Feiyuan Chemical holding about 54.696 million shares of the target company by cash contribution, while unilaterally increasing the registered capital of the target company by about 77.2183 million, obtaining a total of 51% shares of the target company, and the transaction amount is about 1.394 billion yuan.

   Wanhua Chemical intends to realize that Wanhua Chemical and its related parties hold 51% of the chemical business of Copper Group and 34% of the non-chemical business through equity transfer and capital increase. Copper Group is the controlling shareholder of two listed companies, Luoku Chemical and Ananda, holding 25.49% and 30% of their shares respectively.

  Wanhua Chemical announced the acquisition of 47.81% of Yantai Juli Fine Chemical Co., LTD., held by Xinjiang and Shandong Xu Investment Management Center (Limited Partnership), at a price of 1.785 billion yuan. Wanhua Chemical and Ningbo Zhongdeng Investment Co., Ltd. together hold 67.81% equity in Yantai Juli Fine Chemical Co., LTD.

  Wan hua Chemical acquired 30% equity of Hualu Company by bidding for RMB 424.5 million through equity exchange; Xi ‘an Win-win, the company’s employee shareholding platform, acquired 19% of Hualu Company through over-the-counter transactions for 269 million yuan.

  China National Blue Star (Group) Corporation, a subsidiary of China National Chemical Corporation, invested 400 million euros to achieve the wholly-owned acquisition of France’s Adisseo Group, and officially signed the delivery agreement for Adisseo Group in Belgium.

  Chem china has successfully acquired a 100% stake in Kainos Holdings Limited, Australia’s largest ethylene producer. This successful merger and acquisition brings the assets of China National Chemical Corporation to more than 80 billion yuan.

  Chem china has fully acquired the silicone and sulfide business project of Rhodia Group of France, taking China to a higher level in silicone manufacturing.

  China Bluestar has successfully acquired Norway’s Elkem, a world-renowned manufacturer of silicon materials, and Bluestar Elkem announced the completion of the acquisition of Guangdong Polymerization Technology Co., LTD.

  Jiangnan Chemical announced that its subsidiary North Blasting intends to acquire the civil explosion-related assets of Liaoning Qingyang Civil Explosive Equipment Co., Ltd. in cash and obtain the relevant production capacity and technology patents of the latter.

  Jiangnan Chemical intends to acquire 70% of Chaoyang Hongshan Chemical Co., Ltd. held by Liaoning Hongshan Chemical Co., Ltd. in cash. After the agreement between the two sides of the transaction, it is determined that the transaction price of 70% of Chaoyang Hongshan’s equity is 200 million yuan.

  Chemical market reshuffle underway! The integration and reorganization of state-owned enterprises is the general trend

  According to the paint procurement network, in the past 2023 years, nonferrous metals, rare earth, tungsten, mining, coatings, chemical and other fields have appeared a number of mergers and acquisitions, 2024 less than 1 month, there have been more than 20 enterprises updated the disclosure of major restructuring events, the figure of the central state-owned enterprises frequently flashed. Looking at the merger and acquisition of central state-owned enterprises in recent years, the integration of traditional industries such as coatings and chemicals is accelerating, and the restructuring of emerging industries is also quietly increasing. This also implies that the funds of the central enterprises are flowing to private enterprises, and the reshuffle of the industry is also accelerating.

  In June 2023, the State-owned Assets Supervision and Administration Commission of the State Council held a special meeting on improving the quality of listed companies and mergers and acquisitions, and in November, the State-owned Assets Supervision and Administration Commission held an expanded meeting to clarify that it is necessary to accelerate the integration and reorganization of key areas, increase professional integration, and promote the rational flow and optimal allocation of state-owned capital. From the content of the recent meeting held by the State-owned Assets Supervision and Administration Commission of the State Council and the Securities Regulatory Commission, structural adjustment and professional integration have become the key words of the merger and acquisition of central state-owned enterprises.

  Brokerages and investment banks pointed out that mergers and acquisitions are an important way to optimize the allocation of resources and stimulate market vitality, but also to optimize the structural adjustment of state-owned capital layout, in-depth implementation of the reform of state-owned enterprises to deepen and improve the action of one of the measures, but also an important way for state-owned capital to achieve orderly retreat and reasonable flow. In the future, the central state-owned enterprises may continue to increase the layout of forward-looking and strategic emerging industries through mergers and acquisitions, and accelerate the stripping of non-main businesses and non-advantageous assets. The road in front of private enterprises is either eliminated by vicious competition, or it is the peak and eventually “won” by a national central enterprise.