Chinese refiner Sinopec to buy Canada’s Addax Petroleum for $7.2 billion

China’s Sinopec to acquire Addax Petroleum for $7B

CALGARY, Alberta — Canadian oil and gas exploration company Addax Petroleum Corp says that it has agreed to be acquired by Chinese refiner Sinopec in a deal valued at $8.27 billion Canadian (US$7.2 billion).

The wholly owned subsidiary of China Petrochemical Corp. will pay $52.80 Canadian (US$46.17) per share.

Addax, which disclosed earlier this month that it was in sales talks, said Wednesday its board has unanimously approved the deal. It is subject to regulatory approval.

The takeover is the latest effort by Chinese energy and resource companies to expand and diversify overseas assets as Beijing seeks to secure scarce resources for the country’s growth.