CNPC in ethanol producer buyout

China National Petroleum Corp (CNPC) has signed an acquisition agreement with Tianguan Group, an ethanol gasoline producer based in Henan province, Xinhua reported (in Chinese). CNPC will buy 55% of Tianguan to become the company's controlling stakeholder. China's top oil company's investment is important for Tianguan to further expand the production capacity of ethanol based on non-grain raw materials, said an anonymous Tianguan source. CNPC, which is China's largest crude oil provider, aims to enhance its competetiveness in the bio-energy and petrochemical areas through the acquisition.