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Clifford Chance advises HOPU consortium in US$231 million investment in Sinopec

15 October 2014

Clifford Chance advises HOPU consortium in US$231 million investment in Sinopec

Clifford Chance has advised HOPU Investment Management Co., Ltd. as sponsor of a consortium of approximately US$231 million (RMB1.421 billion) to invest in Sinopec Marketing Co., Ltd, the refined oil retail subsidiary of China Petroleum and Chemical Corporation, which operates more than 30,000 petrol stations and 23,000 convenience stores in China.

The HOPU consortium, along with 24 other domestic and foreign investors, will subscribe for a 29.99% interest in Sinopec Marketing for an aggregate amount of approximately US$17.4 billion (RMB107.094 billion). Other key investors in Sinopec Marketing include Fosun International and ENN Energy Holdings.

Beijing Corporate partner Ying White who co-led on this deal commented, "This transaction reflects the Chinese government's efforts in promoting private investment in Chinese state-owned enterprises. These reforms open up a number of interesting investment opportunities, particularly for domestic funds and insurance companies, who are chasing better returns."

Earlier this year, Clifford Chance also advised HOPU as part of a consortium, on a combined investment of up to US$2.5 billion in Global Logistic Properties (GLP), a Singapore-listed provider of logistics facilities in China, Japan and Brazil.

Ying White and Terence Foo co-led the transaction and were supported by senior associate Hong Zhang and associates Menghan Wang and Zhonghua Shi in Beijing, consultant Teresa Leung in Hong Kong and associate Rebecca Pereira in New York.