The Chinese government approved China Petroleum and Chemical Corp’s (Sinopec) US$7.5 billion takeover of Addax, the largest-ever overseas takeover by a Chinese company, AP reported. Sinopec said it had received confirmation of the approval from the National Development and Reform Commission. The deal is yet to be approved by two-thirds of Addax Petroleum shareholders. When complete, the acquisition will give Sinopec access to important resources in Africa and the Middle East. Sinopec’s shares fell 5% Wednesday during a larger market sell-off that saw the Shanghai Composite Index fall 4.7%. London- and Toronto-listed Addax’s oil and gas assets include joint operation with Turkish energy firm Genel Enerji of the Taq Taq field in Iraq.
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