China is said to near mega merger of ChemChina, Sinochem group

China is nearing a long-mooted mega merger of China National Chemical Corp and Sinochem Group after top executives completed preparatory work for the deal, people with knowledge of the matter said.

Significant issues around how the companies will be combined have largely been resolved, according to the people, who asked not to be identified because the information is private. A deal is ready to be announced as soon as the coming weeks, the people said.

It’s not clear whether authorities have made a final decision on when to formally unveil the transaction. If the government opts to take action against ChemChina or any executives following a lethal chemical explosion last month at one of its facilities, those sanctions could be announced first, the people said. Any such move might delay the merger announcement, according to the people.

The deal, in the works for at least two years, would change the landscape of the nation’s chemicals industry and add to a wave of consolidations aimed at shaking up China’s vast state-owned sector. The planned combination would create an oil-to-chemicals giant with more than $100bn of assets.

Chinese authorities have already granted preliminary approval for the merger and tasked Frank Ning, who heads both companies, with working out implementation details, Bloomberg News reported in September.