Deal called off: A file picture showing a logo of Sinochem outside an office building of Sinochem in Beijing. The country is planning to abandon the long-mooted merger of chemicals giants Sinochem Group Co and China National Chemical Corp, the Financial Times reported Thursday, — Reuters
China has a standard road map for fixing state-owned giants that have gone off the rails: Create an even more inflated behemoth through a mega-merger, in the hope that the stronger business will be able to prop up the weaker one until the storm blows over.
It’s a playbook that’s been followed in steel, shipping, energy and rolling stock - but in the chemicals industry, it’s not working.
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