China Continues Game-Changing Energy Moves with Sinopec’s $7 Billion Brazil Buy

Filed in silver by on October 4, 2010 0 Comments

Chinese state oil company China Petroleum & Chemical Corp. (Sinopec) (NYSE ADR: SNP ) said Friday that it would invest $7.1 billion in the Brazilian unit of Spain’s Repsol YPF S.A. (NYSE ADR: REP ) to form one of the largest private energy companies in Latin America. The investment is the second-largest overseas purchase by a Chinese company and drives the market capitalization of Repsol’s Brazilian arm up to $17.8 billion. Analysts estimated the company’s value at $10.7 billion earlier this year. Sinopec’s investment gives it a 40% stake in Repsol’s Brazil business, and access to the highly valued Brazilian offshore sub-salt oil fields. The move highlights South America’s importance to China as the Asian powerhouse goes on a spending spree to meet its fast-growing energy demand.

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China Continues Game-Changing Energy Moves with Sinopec’s $7 Billion Brazil Buy

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