Narrative
Full Description
Project narrative
In 2011, the London Branch of the Bank of China (BOC) provided a loan to Chinese state-owned oil and gas company PetroChina Company Limited to facilitate its $1.015 billion USD (about RMB 6.569 billion) acquisition of a 50% ownership stake in United Kingdom-based INEOS Group Holdings Plc's European refining business, including plants in Scotland and France and forming a joint venture with INEOS. Further details are unknown. In January 2011, under the witness of Chinese Vice Premier Li Keqiang and British Deputy Prime Minister Nick Clegg, PetroChina and INEOS Group signed a framework agreement to form a joint venture in the European refining business. Then, on April 8, 2011, PetroChina International (London) Co., Ltd. (PCI), a wholly owned subsidiary of PetroChina, INEOS Investments (Jersey) Limited, INEOS Investments (Jersey) Limited (IIJL), and INEOS European Holdings Limited and INEOS Investments International Limited (wholly owned subsidiaries of INEOS) entered into an acquisition agreement in which PCI would acquire 50.1% of all issued and outstanding shares in INEOS Refining Limited and 49.9% of all the issued and outstanding shares in INEOS Refining II Limited. On July 1, 2011, PCI completed its transaction with INEOS Group Holdings plc, forming the joint venture between PCI and IIJL for refining and trading at refineries in Grangemouth, Scotland and Lavra, France.
Staff comments
1. The Chinese project title is 从收购英力士公司苏格兰地区炼油厂. 2. The face value of the Bank of China loan is unknown. However, given that the total cost of the acquisition was $1.015 billion and M&A loans typically cover at least 70% of the total cost of the acquisition, AidData assumes for the time being that the face value of the Bank of China loan was roughly equivalent to $710,500,000. This issue warrants further investigation.