Sinopec announced on 23 July 2012 that their overseas investment arm, SIPC, would acquire a 49% equity interest in Talisman Energy Inc.’s UK subsidiary for about US$1.5 billion.
China Petrochemical Corporation (Sinopec) announced on 23 July 2012 that their overseas investment arm, Sinopec International Petroleum Exploration & Production Corporation (SIPC), would acquire a 49% equity interest in Talisman Energy Inc.’s UK subsidiary for about US$1.5 billion.
The transaction was completed on 18 December 2012. This acquisition not only provided Sinopec access to the oil & gas business of the UK’s North Sea for the very first time, but also marked a milestone signalling the presence of Chinese energy enterprises in the development of North Sea oil & gas. From a global perspective, it also represented this year’s biggest M&A deal targeting UK oil & gas assets, with the largest announced value.
Honson To, Head of Transactions and Restructuring for KPMG in China, summed up his thinking on the KPMG’s involvement: “We are proud to have advised Sinopec on this transaction. Our team included M&A professionals from China and the UK, working together seamlessly to provide advice on financial and tax due diligence, transaction structuring and financing structuring. Our assistance to Sinopec will continue post transaction. China’s outbound investments have rapidly increased over the last few years as more Chinese companies globalize. We expect the trend to continue.”
Peter Fung, Chairman of KPMG’s Global China Practice (GCP), further commented, “We congratulate Sinopec on another successful global acquisition, one which demonstrates Chinese enterprises’ increasingly important role in the international M&A market. KPMG has long stood by Chinese companies in their quest to ‘Go Global’ - KPMG was involved in 10 out of the top 20 M&A deals in the 12 months ending 30 September 2012, including the largest-ever China outbound transaction. Looking ahead, we believe that more Chinese enterprises will seek global acquisitions and GCP is dedicated to serve them in the process, by integrating the firm’s international resources and deploying the most appropriate professionals with the right background and project experience.”
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KPMG’s Transactions & Restructuring Services
KPMG's Transactions & Restructuring group comprises four divisions, providing transaction services, corporate finance, restructuring services, and forensic accounting advice. Whether you aim to buy a business, raise capital, investigate fraud, improve performance or wind down operations, our professionals can devise and help implement practical and commercial strategies to achieve your goals.
KPMG Global China Practice (GCP)
KPMG’s Global China Practice (GCP) was established in September 2010, to assist Chinese businesses that plan to go global, and multinational companies that aim to enter or expand into the China market. The GCP team in Beijing includes senior management and staff members responsible for business development, market services, research and insights on foreign investment issues.
There are currently around 50 China Practices in key investment locations around the world, from Canada to Cambodia and from Poland to Peru. These China Practices are comprised of locally based Chinese-speakers and other professionals with strong cross-border China investment experience. They are familiar with Chinese local culture and business practices, allowing them to effectively communicate between member firms’ Chinese clients, local businesses and government agencies.
The China Practices also assist investors with China entry and expansion plans. They provide assistance on both inbound and outbound investment matters, across the entire investment life cycle, including: market entry strategy, location studies, investment holding structuring, tax planning and compliance, supply chain management, M&A advisory and post-deal integration.
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 152 countries and have 145,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG China has 13 offices, including KPMG Advisory (China) Limited, in Beijing, Shenyang, Qingdao, Shanghai, Nanjing, Chengdu, Hangzhou, Fuzhou, Xiamen, Guangzhou, Shenzhen, Hong Kong and Macau, with around 9,000 professionals.