Mergers & Acquisitions
ConocoPhillips to Sell Syncrude Stake to SinopecApril 12, 2010, 1:04 pm
ConocoPhillips announced Monday that it had agreed to sell its 9 percent stake in Syncrude Canada to the Sinopec International Petroleum Exploration and Production Company of China for $4.65 billion.
“This is an important step in the $10 billion divestiture program which we announced last October, and we are pleased that S.I.P.C. has recognized the value of this quality asset,” Jim Mulva, chairman and chief executive of ConocoPhillips, said in a statement. “The completion of this transaction demonstrates the strength of the asset base available to meet our asset sales goals.”
ConocoPhillips said the sale of its Syncrude stake was part of its effort to strengthen its financial position and improve its return on capital investments.
Syncrude Canada is the world’s largest producer of light sweet crude oil from oil sands, according to Hoover’s, a business information provider owned by Dun & Bradstreet.
Sinopec, as the China Petroleum and Chemical Corporation is known, is one of the largest oil producers and refiners in Asia.
ConocoPhillips said it expected the deal to close in the third quarter after it receives regulatory approval from the Canadian and Chinese governments. Credit Suisse acted as the financial adviser for ConocoPhillips in this transaction and Osler, Hoskin & Harcourt acted as legal adviser.
Press Release ConocoPhillips