Global law firm White & Case LLP has advised Aramco on its acquisition of a 10 percent interest in Shenzhen-listed Rongsheng Petrochemical Co. Ltd. (Rongsheng) for RMB24.6 billion (US$3.6 billion).
"This acquisition is a significant milestone marking Aramco’s long-term commitment to the downstream sector in China and Asia," said White & Case partner Saul Daniel, who co-led the Firm's deal team. "It speaks to the importance of the sector in a region that will continue to see rapid economic growth."
Rongsheng owns a 51 percent stake in Zhejiang Petroleum and Chemical Co. Ltd. (ZPC), which in turn owns and operates the largest single refining and chemicals complex in China. Aramco’s wholly-owned subsidiary, Aramco Overseas Company (AOC), will acquire the interest in Rongsheng. The definitive agreements were signed on March 27, 2023, and the transaction is expected to close by the end of 2023.
White & Case partner Vivian Tsoi, who co-led the Firm's deal team, said: "This transaction is the second in a series of strategic investments made by Aramco in China in recent months. Our work for a longstanding client on these transactions is a testament to our position as a leading adviser to the energy sector in Asia-Pacific and our team’s ability to successfully deliver on complex transactions."
ZPC's integrated refinery and petrochemical facility is located in the city of Zhoushan in the eastern province of Zhejiang and includes an 800,000 barrel per day refinery and a 4.2 million metric tonnes per annum ethylene cracker. Aramco signed a long-term crude oil supply agreement, providing 480,000 barrels per day of feedstock to ZPC.
The White & Case team which advised on the transaction was led by partners Saul Daniel (Singapore) and Vivian Tsoi (Shanghai) and included partner Strati Sakellariou-Witt (Brussels), local partners James Hsiao (Hong Kong) and Peiwen Chen (Singapore), counsel Ee Lynn Tan (Singapore) and Amy Yang (Shanghai), associates Cristian Blumm, Nettie Choo, Callum Fitzpatrick, Yun Yong (all Singapore), Charlie Zhu, Yan Yan, Chunlei Pang (all Shanghai), Royston Tan, Annie Wan (Hong Kong) and Giuseppe Tantulli (Brussels) and senior legal consultant Frank Shu (Shanghai).
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