(Yicai Global) April 1 -- Two of China’s largest chemical giants, Sinochem Group and China National Chemical Corporation, have been given the greenlight to start the much-anticipated merger that will create a state-owned behemoth with oil-to-chemical assets worth USD200 billion.

The State-owned Assets Supervision and Administration Commission of the State Council has approved the “joint reorganization” of the two firms, it said in a one-line statement on its website yesterday.

The new chemicals giant will have assets of around USD200 billion after the merger and a revenue of USD146 billion a year, according to Fortune magazine data.

The goal of the merger, which has been in discussion since at least 2017, is to create a globally competitive powerhouse in terms of production scale and innovation capabilities, Ning Gaoning, chairman of both companies, said last September.

Both Beijing-based firms are Fortune Global 500 companies, with Sinochem ranking 109th last year and ChemChina 164th. They control 17 companies listed on stock markets around the world, including Hong Kong-listed fertilizer firm Sinofert, Oslo-listed silicon supplier Elkem and Milan-listed tire maker Pirelli.

Sinochem is primarily engaged in the production and sale of chemicals, fertilizers and oil. It employs 60,000 people worldwide. ChemChina produces specialty chemicals, agrochemicals, rubber tires, refined petroleum products and industrial equipment. It has 148,000 staff.

Editor: Kim Taylor