PetroChina buys into Singapore Petroleum

Before you go, we thought you'd like these...
Before you go close icon

In a sign that cash rich Chinese companies are prepared to invest more aggressively overseas, PetroChina (PTR) is buying 45 percent of Singapore Oil for $1 billion. If may even offer to buy the rest of the firm.

The Chinese economy is doing well enough, compared to the rest of the world, that it is in a good position to buy assets that have lost much of their value due to the recession.

According to Bloomberg, because PetroChina is controlled by the China central government it can take a very long-term view of its investments without significant concern that it will alienate public shareholders.

If the recession continues for another year of two, China will probably be an aggressive bidder for strategic assets that could include oil, minerals -- and even some sectors of the car industry. This could put it at odds with other governments who might fight Chinese investments in businesses considered critical to local economic interests. Would the U.S. Congress and Administration let a Chinese company buy Chrysler? Maybe, but there would be a hell of a political fight first.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Read Full Story

Markets

S&P 500 2,351.62 5.66 0.24%
DJIA 20,687.66 31.08 0.15%
NASDAQ 5,847.95 30.26 0.52%
DAX 12,043.92 4.24 0.04%
NIKKEI 225 19,262.53 177.22 0.93%
HANG SENG 24,358.27 30.57 0.13%
USD (per EUR) 1.08 0.00 0.13%
USD (per CHF) 0.99 0.00 -0.14%
JPY (per USD) 111.17 0.16 0.15%
GBP (per USD) 1.25 0.00 -0.30%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners