Sinopec acquires Addax Petroleum

Chinese oil giant Sinopec has agreed to acquire Canadian oil and gas exploration company Addax Petroleum Corporation in a deal valued at $8.27 billion Canadian (US$7.2 billion), which will give it access to oil reserves in West Africa and the Middle East. The takeover by Sinopec, formally known as China Petroleum & Chemical Corporation, represents another strong move in a drive by Chinese energy companies to expand their overseas assets as the government pushes to secure the countryÔÇÖs future growth. The company will now be able to take advantage of AddaxÔÇÖs presence in West Africa and the Middle East. ÔÇ£We are pleased that Sinopec has recognised the highly attractive asset portfolio and exceptional team that we have assembled at Addax Petroleum,ÔÇØ said AddaxÔÇÖs president and chief executive officer, Jean Claude Gandur, in a statement. ÔÇ£The efforts and accomplishments that Addax Petroleum has achieved thus far will be built on through increased investment in the business and acceleration of development and exploration plans.┬á "While Addax Petroleum will cease to be a publicly traded company, we look forward to continuing our business in the countries in which we operate for the benefit of all stakeholders.ÔÇØ  As part of the deal, which is subject to regulatory approval, Sinopec will pay $52.80 Canadian, or $46.17, per share for the remaining common shares of Addax. Addax has confirmed today that its board has unanimously approved the deal. Sinopec said in its own statement that the deal would help its plans for expansion in West Africa and Iraq and that AddaxÔÇÖs offshore deep-water exploration projects hold particular potential for SinopecÔÇÖs further growth. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *