CEFC will pay 680 million dollars for the purchase of 51 per cent stake in KMGI, the former Rompetrol Group

Chinese company CEFC will pay 680 million dollars for the purchase of 51 per cent stake in KMGI, the former Rompetrol Group, while pledging to invest at least 3 billion dollars over the next five years, according to the CEFC website. 

Kazakhstan's national oil and gas company, KazMunayGas (KMG), and China Energy Company Limited (CEFC) signed on Friday the specific documents for the establishment of a joint venture, with the Chinese company having become the majority shareholder with 51 per cent, and the participation of KMG in the new joint venture will be 49 per cent, KMG announced on Friday. 

Under the understanding between KMG and CEFC, the Chinese company assumes a number of obligations, including making investments in developing new projects in the European Union and countries adjacent to the Silk Way. 

The transaction is subject to prior measures, which entail the final approval from the competent European and Chinese authorities, but also from other institutions. The estimated date for completion is October 2016. 

Chinese company CEFC is one of the fastest-growing private companies in China. In 2014 the company was included in Fortune Global 500 list at no. 349. CEFC operates in the fields of energy, finance and investment. 

KMG International (former Rompetrol Group NV) was taken over by KMG in 2007. In Romania, the Group manages two oil refineries and in Europe and in the Black Sea region it owns and operates a significant chain of fuel distribution stations. 

According to a December 30, 2015 decision of the Government in Kazakhstan, KMGI was included on the list of companies to be privatized.

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