China state-owned oil refiner China Petroleum and Chemicals Corporation (Sinopec) has sealed a C$8.27bn (US$7.2bn) takeover deal to acquire Swiss oil explorer Addax Petroleum.
The deal is expected to be China’s largest ever outbound investment in the oil and gas industry.
The deal will give Sinopec access to Addax’s high potential oil resources in West Africa and Iraq, the company said.
Sinopec’s offer of $C52.80 per share of Addax, 16% more than Addax’s closing share price on Tuesday, was enough to beat competing Korea National Oil Company.
The agreement includes a contract termination fee of C$300m ($325.5m).