appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Daniel Ren

Beijing has given the green light to an asset-restructuring deal involving the country’s largest oil refiner and a leading distributor of jet fuel, continuing efforts to streamline operations of major state-owned juggernauts.
China Petroleum and Chemical Corp, better known as Sinopec, and China National Aviation Fuel Group (CNAF) will conduct a revamp of their assets after receiving the nod from the State Council, the State-owned Assets Supervision and Administration Commission (SASAC) said in a statement on Thursday.
It did not provide details about the reorganisation between the two companies. In mainland China, asset restructuring between two state-owned giants is synonymous with a merger.
“The state-asset regulator is looking to orchestrate more consolidation deals to strengthen the financial muscle and operating efficiency of big companies in some important industries,” said Wang Feng, chairman of Ye Lang Capital, a Shang­hai-based financial services group. “A merger between the two firms will create a more vertically integrated oil empire.”

Sinopec processes crude into oil products, including jet fuel – supplying it to CNAF, which controls the refuelling network at mainland China’s airports.
According to a Bloomberg report in November, Sinopec was in talks to take over the jet fuel distributor as travel demand rebounded from the Covid-19 pandemic. China consumed more than 40 million tonnes of jet fuel a year, or about 1 million barrels a day, the report added.
SASAC’s announcement comes amid rising worries about China’s crude supply from Venezuela. China is the world’s largest buyer of crude from the South American country.
The US was demanding oil-rich Venezuela reduce its economic ties with China after the capture of the country’s former president Nicolas Maduro and his wife last week, ABC News reported.
The couple was grabbed from the presidential compound in Caracas by US special forces and whisked to New York to face drug and weapons charges.
The Chinese government has been urging state-owned industrial behemoths to reduce overcapacity and excess stockpiles over the past five years to enhance the country’s manufacturing capability and improve the quality of state assets.
Heavy industries such as coal, steelmaking and power generation are the key areas that the top policymakers aim to overhaul.
The number of central government-controlled companies under SASAC currently stands at 100, down from 170 in 2009.
The integration effort aimed to boost the long-term development of state-owned enterprises through mergers, eliminating redundant capacity and boosting overall efficiency, SASAC said in November.
In 2024, China’s state-owned shipbuilding juggernaut CSSC Holdings announced a plan to take over China Shipbuilding Industry Company. The merger would create an entity with annual sales of more than 120 billion yuan (US$17.15 billion), nearly double that of South Korea’s Hyundai Heavy Industries.
CSSC, now the world’s largest shipbuilding conglomerate, controls one-third of the global market.
In December, Lin Qingshan, vice-president of Jiangnan Shipyard (Group), a subsidiary of CSSC, told the Post that the company planned to build the world’s first nuclear-powered container vessel, a move that would cement China’s dominance in an industry increasingly shifting to renewable energy.
Construction could start in 10 years’ time, he added.


Amazon and Shorea Capital deals underscore foreign interest in commercial property

Chinese carmakers GAC and FAW eye potential tie-up of their Toyota operations

Talk is growing of a Tesla-SpaceX merger. Will geopolitics throw a spanner in the works?

Will Hong Kong see fewer creditor-led commercial property sales as assets stabilise?

Mergers & Acquisitions

China’s oil giants Sinopec, CNAF to undergo consolidation, creating energy powerhouse

A Sinopec worker walks past LNG storage tanks  in Tianjin, China. Photo: Reuters

China National Aviation Fuel Group controls the refuelling network at mainland China’s airports. Photo: Handout via Xinhua

What assets does China have in Venezuela, and what could happen with Maduro gone?

Hours before Caracas was rocked by explosions on Saturday, Venezuelan President Nicolas Maduro (right) held a three-hour meeting with Qiu Xiaoqi, China’s special envoy appointed by President Xi Jinping. Photo: handout

US removal of Maduro has potential to reshape global oil market: analysts

In a photo released by the White House, US President Donald Trump monitors American military strikes on Venezuela from his Mar-a-Lago resort in Florida on June 3. Photo: AP

In a photo released by the White House, US President Donald Trump and other senior US officials monitor American military strikes on Venezuela from Mar-a-Lago, Florida, on Saturday. Photo: AP

China’s massive oil-for-loan debts at risk in post-Maduro Venezuela: analysts

Vehicles drive past the El Palito refinery in Puerto Cabello, Venezuela. Photo: AP

US officials escort Venezuelan former president Nicolas Maduro towards a court in New York City after his abduction over the weekend. Photo: Reuters

Business

Banking & Finance

China Business

Companies

Money

Markets

Commodities

Economy

China Economy

Global Economy

State Council approves reorganisation between Sinopec and China National Aviation Fuel Group, state asset regulator says


State Council approves reorganisation between Sinopec and China National Aviation Fuel Group, state asset regulator says.


China’s oil giants Sinopec, CNAF to undergo consolidation, creating energy powerhouse

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}State Council approves reorganisation between Sinopec and China National Aviation Fuel Group, state asset regulator says

State Council approves reorganisation between Sinopec and China National Aviation Fuel Group, state asset regulator says