Market Up: China's Rongsheng Petro Chemical Soars Following Aramco's Acquisition of 10% Stake.
The stock prices of Rongsheng Petro Chemical Co. jumped on Tuesday following an announcement that Saudi Arabian Oil Co. would be buying a 10% share of the Chinese refinery. This deal will cost approximately 24.6 billion yuan ($3.6 billion).
The company's stocks rose by 10% during midday trading break which is the maximum increase allowed for daily share price gain in China. As a result, the shares are expected to reach their highest closing level in approximately six months and experience their most significant one-day percentage hike in more than a year.
The gathering happened subsequent to Saudi Arabia's renowned oil organization, Saudi Aramco, declared on Monday that it has contracted "decisive contracts" to secure the deal as an endeavor to extend its downstream ventures in China. By means of a fully-owned subsidiary, Aramco will obtain the share purchase.
According to the Saudi business, the deal is anticipated to conclude before 2023 comes to a close, but will require regulatory approvals.
Along with selling the stake, the two businesses also entered into a permanent sales agreement. This deal states that Aramco will provide 480,000 barrels daily of Arabian crude oil to Rongsheng's associate, Zhejiang Petroleum and Chemical Co. Ltd.
You can contact Yifan Wang by emailing him at [email protected].
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