Sinochem set for first offshore takeover

With a South Korean court approving state-owned Sinochem's bid to take over financially troubled Inchon Oil, China appeared set to make its first takeover of a foreign oil company for US$549 million. A Korean judge confirmed that Sinochem, which had been buying crude oil from Inchon before the judgment, was free to sign the deal any time. Sinochem signed a preliminary agreement to buy the company in June. Inchon creditors, including Korea Development Bank and Kookmin Bank, still have to review the deal. Inchon went bankrupt in 2002 and currently uses only 30% of refining capacity at its one plant.