Russian Federal Antimonopoly Service (FAS) announced on January 11, 2016, that the Government Commission on Foreign Investment approved acquisition of a 10% stake in Sibur by the Chinese Silk Road Fund subsidiary.
Russian Prime Minister, Dmitry Medvedev, said at the Commission’s session on Wednesday: «Today we have a number of bidding applications, including that from a Chinese company, Silk Road Fund, which would like to acquire Sibur’s shares. We are still interested in broadening cooperation with those, who is ready to create and develop projects in our country».
China's Silk Road Fund, a $40 billion state-owned investment vehicle to foster increased investment along the silk road, has agreed to acquire a 10% stake in Sibur Holding, Russia's largest gas processing and petrochemicals company.
As part of the deal, the Silk Road Fund will be able to nominate its representative to Sibur's board of directors.
The transaction, which is expected to complete in January 2017, follows Chinese state petrochemical company Sinopec's acquisition of a 10% stake in Sibur at the end of 2015.
The deal, initially announced in November, is also China's largest investment in Russia in 2016, the Silk Road fund said in a statement.
The fund has previously acquired 9.9% of Russia's liquefied natural gas project Yamal LNG.
To read this news in Russian.
