The merger of state-owned Chinese chemical giants – Sinochem Group and ChemChina Group – has been approved, China News reported the country's top state assets regulator as saying.

The merger of state-owned Chinese chemical giants – Sinochem Group and ChemChina Group – has been approved, China News reported the country's top state assets regulator as saying.

Approval for the merger was confirmed in a statement by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) on its website on 31 March.

Headquartered in Beijing, Sinochem Group is a leading operator in the oil and chemical industry, providing agricultural inputs (seeds, agrochemicals and fertilisers) and agricultural services.

Beijing-based ChemChina Group is a leading Chinese chemical company with production and research and development bases in 150 countries and regions worldwide.

The merger will involve a joint restructuring of the two companies, with both becoming subsidiaries of a new holding company wholly owned by the SASAC, according to a statement on Sinochem Group’s website.

The reorganisation would lead to more integrated resources, the statement said.

“The global chemical industry is highly concentrated… and dominated by large enterprises. In recent years, global chemical giants have undergone consolidation to create large-scale chemical companies,” the statement read.

Following the reorganisation, the new company will cover fields including life sciences, material sciences, the basic chemical industry, rubber tyres and urban operations, according to Sinochem Group.