Sinopec in talks to acquire Addax Petroleum for $8 billion

12 June 2009

Asia's largest crude refiner, China's state-owned Sinopec is reported to be in preliminary takeover talks with Canadian Addax Petroleum for approximately $8 billion.

The Geneva-based oil and gas producer, Addax is one of the largest independent oil producers in West Africa with a number of producing properties in Nigeria and Gabon, and exploration and development properties and new venture opportunities in West Africa and the Kurdistan Region of Iraq.

Nearly 75 per cent of Addax's output comes from Nigeria.

''Addax Petroleum acknowledges that it has held preliminary discussions with third parties expressing an interest in a potential transaction with the Corporation," said the company said in a statement.

It aded, "While such preliminary discussions are ongoing, no assurance can be given that a transaction will be completed. Addax Petroleum does not intend to make further comment unless or until there is a transaction to announce.''

Addax, which has dual listings on the London and Toronto exchanges, has been a target for acquisition for some time, with earlier speculation linking China's third largest oil company-CNOOC, Japan's Mitsubishi and India's largest oil producer Oil & Natural Gas Corporation as being possible overseas companies having a keen eye on Addax.