China’s Sinopec to acquire Daylight for C$2.2bn

Sinopec Group, a unit of China’s state-backed energy company China Petroleum & Chemical Corp, late on Sunday signed a deal to acquire Canada’s oil and gas explorer Daylight Energy for C$2.2bn.

In its largest acquisition this year Sinopec offered a 43.6 percent premium to Daylight Energy’s 60-day weighted average trading price, or C$10.08 a share, in cash.

The deal is considered to be the largest takeover by a Chinese energy company in North America after rival Cnook bought Opti Canada for $2.1bn earlier this year.

Sinopec is China’s largest producer and supplier in oil products and major petrochemical products and will join competitors Cnook and China National Petroleum in their attempt to expand global shale gas exploration through international partnership.