Signs are growing that Sinochem, a state-owned conglomerate that prides itself on being almost as old as the People’s Republic of China, is considering ways to block BHP Billiton’s $39bn hostile bid for PotashCorp.
It’s not every day that a company whose slogan is “the third Long March” – a reference to the arduous wartime journey undertaken by Mao Zedong and his troops in the 1930s – sets out to disrupt a global M&A deal. But Sinochem’s history and roots in communist China, yield indicators as to how it might approach its own bid.
Although the Chinese chemicals and energy conglomerate has yet to make a formal offer for the Canadian fertiliser company, the group has been looking closely at ways to block BHP’s hostile takeover, people involved in the discussions have told the Financial Times.