This past week, Sinopec (China Petroleum & Chemical) NYSE: SNP announced it is acquiring Addax of Switzerland.
It is a significant deal on a number of fronts.
First, Sinopec is the largest listed company in China. It is listed also on NYSE, London and Hong Kong exchanges. And it took this step which is the largest acquisition of a Chinese company outside of the region. Showing China’s coming global reach which will be growing over time.
Secondly for the oil industry at large, a Chinese company stepping into exploration outside the region into the Mideast is big step forward not only onto a more global stage, but further highlights the importance of the region.
It also tells us that demand for energy will continue and Sinopec is taking steps to be the player in Asia for years to come.