China Economic Review
Charting China’s changing economic terrain · Since 1990

Sinochem's Inchon refinery bid stalled

December 21, 2004

Considered a done deal by many, Sinochem Corp's takeover of South Korea's Inchon Oil Refinery Co was blocked by creditors claiming the sale price was too low, an Inchon official said. Sinochem won control of the company on paper in September for 635.1bn won (US$602m), which was slightly lower than its original offer. Korea's second largest refiner is under administration after defaulting on loans totalling 20bn won. A Korean court has given buyer and seller a month to sort out their differences. Said the Inchon official: "Realistically, there's no other way to solve this problem than for Sinochem to raise its offer price."

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