Sinopec and Korea National Oil Co (KNOC) are locked in a battle over the acquisition of Addax Petroleum, the South China Morning Post reported, citing sources familiar with the matter. Bids for the Swiss oil and gas explorer have reached in excess of US$8 billion, including debt. Both KNOC and Sinopec are still negotiating with Addax. A source with direct knowledge of the matter told the Post, “KNOC has put in a bid for Addax – for the whole company.” Addax’s current market capitalization is roughly US$6.1 billion. The firm is primarily focused on Africa and the Middle East, and has projects in Nigeria, Gabon, Cameroon, and exploration licenses in the Kurdistan region of Iraq. A takeover by either Sinopec or KNOC would continue both companies’ long-term strategies of securing energy supplies for their home countries’ growing economies. Sinopec earlier denied it had made a bid for Addax.
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