• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 27 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days What fool thought this was a good idea...
  • 1 day Bad news for e-cars keeps coming
  • 9 days A question...
  • 14 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 14 days They pay YOU to TAKE Natural Gas

Chinese State Firm Buys Into CEFC Unit Acquiring Rosneft Stake

A state-controlled Chinese firm has bought 36.2 percent in the unit of private company CEFC China Energy, through which CEFC is buying 14 percent in Russia’s Rosneft for US$9 billion, which could add further fuel to the growing media speculation as to what is happening to the private Chinese energy firm that has agreed to buy into the Russian oil giant.

Little-known private company CEFC China Energy puzzled analysts and industry observers when it said in September 2017 that it would buy 14 percent in Rosneft from Glencore and the Qatar Investment Authority (QIA). Six months later, the mystery surrounding CEFC China Energy is not only left unsolved—it has become even more unclear, with a flurry of media reports over the past week revealing that its CEO is under investigation by the Chinese authorities and that the Chinese state has taken over management of the company as it seeks to rein in private businesses and their unrestrained spending.

The flow of media reports about troubles at CEFC China Energy makes analysts question the company’s ability to close to the Rosneft deal, as it looks like that the Chinese firm is in the crosshairs of the crackdown on private businesses after President Xi Jinping’s government warned just last week that no Chinese billionaire, no matter how well-connected, is safe from scrutiny and investigation.

Related: The Mysterious Chinese Company Looking To Buy Rosneft

According to a filing of CEFC to an online portal run by China’s State Administration for Industry & Commerce (SAIC), reported by Reuters on Friday, state-held China Huarong Asset Management Co—the country’s largest distressed debt manager—bought the stake in CEFC China Energy subsidiary CEFC Hainan International in two tranches, one in December and one in February.

CEFC unit CEFC Shanghai International Group Co owns the other 63.8 percent in CEFC Hainan.

While it was not immediately clear how much China Huarong had paid for the 36.2-percent stake, the registered capital of CEFC Hainan increased by US$1.5 billion (9.6 billion yuan) after the transaction, according to the filing seen by Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News