BP seeking sale of its 50% stake in Secco, its Chinese petrochemicals joint venture

10-Aug-16

BP is looking to sell its stake in Secco, a Chinese petrochemicals joint venture and is believed to have appointed an investment bank to scout for potential buyers for its 50%. As per Reuters, the potential sale would fetch BP between US$2 - 3 bln. The move is part of a process to cash out of businesses where it does not have much control, the sources added. The sale, if successful, would mark the British company's first significant exit from a business in China.
Secco's other owners include China Petroleum and Chemical Corporation (Sinopec Corp) and Shanghai Petrochemical Company Limited (SPC). Sources told the news agency that Sinopec had the right of first refusal on the potential sale of BP's stake, but added that it was unlikely that the stake would get any interest from state-owned companies as numerous executives were in the midst of anti-corruption probes. Hence, the stake has been offered to existing refinery operators in China and other countries such as Japan, South Korea, Taiwan and Europe.