CHINA’S State-owned Sinochem is in early talks with Noble Group to buy an equity stake in the embattled trader, three sources familiar with the matter said, in a move that would help it gain access to the commodity trader’s global supply chain.

    Taking a stake in an internationally active trading house like Noble would help Sinochem, a big oil, gas and petrochemical company, in its ambitions to become a more globally active energy trader, and also develop China’s gas industry.

    The discussions are taking place as Noble looks to rejig its business units, cut debt and boost liquidity to fight a long-term downtrend in commodity prices.

    In November, Hong Kong-headquartered Noble said it had met its fundraising target of US$2 billion as it sold assets, completed a rights issue and restructured its operations.

    The sources said the talks have not been completed and there is no assurance that a deal will be finalized. They said senior Noble executives visited the mainland in recent months to hold talks with Sinochem’s management, and both sides also met at Noble’s U.S. regional hub in Stamford, Connecticut.

    Noble already has the backing of Chinese sovereign wealth fund China Investment Corp., which participated in the firm’s rights issue last year. (SD-Agencies)