China signs $7.3b in deals with Spanish firms

China signed deals with Spanish companies worth a collective US$7.3 billion as part of Vice Premier Li Keqiang’s visit to the country, the Wall Street Journal reported. The contracts cover 16 sectors, including energy, banking, telecom, transport and agriculture. By far the most valuable deal has already been announced: China Petroleum & Chemical Corp (Sinopec; SNP.NYSE, 600028.SH, 0386.HK) is to acquire certain Brazilian assets from Spanish oil firm Repsol YPF (REP.BMAD) for US$7.1 billion. Chinese state media reported that, among the other contracts to be signed, Beijing will spend US$13.5 million on meat products, US$9 million on olive oil, US$6 million on wine and US$260,000 on ham. Having already pledged China’s support for Spain’s sovereign debt market, Li said Beijing would welcome Spanish financial firms launching operations in China. BBVA (BBVA.NYSE, BBVA.BMAD), Spain’s second largest bank, has signed a cooperation agreement for Latin America with China Development Bank.