Hengyi Petrochemical Co., Ltd. (SZSE:000703) entered into an agreement to acquire Zhejiang Shuangtu New Material Co., Ltd. from Xinghui Chemical Fibre Group Co., Ltd and Fulida Group Holding Co., Ltd. for CNY 1.8 billion on March 13, 2018. Under the terms of the transaction, Hengyi Petrochemical Co., Ltd. will issue 53.92 million shares to Xinghui Chemical Fibre Group Co., Ltd and 53.92 million shares to Fulida Group Holding Co., Ltd. at CNY 16.71 per share for their respective 50% stakes each. As on April 2, 2018, Hengyi Petrochemical Co., Ltd. will now issue 53.1 million shares each to Xinghui Chemical Fiber Group Co., Ltd. and Fulida Group Holding Co., Ltd. at CNY 19.81 per share for their respective 50% stakes each. As on August 30, 2018, terms has been changed now Hengyi Petrochemical will issue 150.25 million shares. In related deals, Hengyi Petrochemical Co., Ltd. entered into an agreement to acquire 100% stake in Jiaxing Yipeng Chemical Fiber Co., Ltd. and Taicang Yifeng Chemical Fiber Co., Ltd. from Zhejiang Hengyi Group Co., Ltd.for CNY 2.3 billion on March 13, 2018. As at December 31, 2017, Zhejiang Shuangtu New Material Co., Ltd. reported total assets of CNY 3.73 billion and net assets of CNY 1.36 billion. For the year 2017, Zhejiang Shuangtu New Material Co., Ltd. revenue of CNY 7.63 billion, and net profit of CNY 208.03 million. The transaction is subject to secondary directorate approval by the Board of Directors of Hengyi Petrochemical Co., Ltd., approval of shareholders of Hengyi Petrochemical Co., Ltd., approval from the Ministry of Commerce, and approval from China Securities Regulatory Commission. On March 13, 2018, the transaction has been approved by the internal decision-making bodies of Fulida Group Holding Co., Ltd. and Xinghui Chemical Fibre Group Co., Ltd., the internal decision-making body Zhejiang Shuangtu New Material Co., Ltd., and 10th directorate in its 9th meeting of Hengyi Petrochemical Co., Ltd. On April 2, 2018, the amendment to the transaction was approved by the 10th session of the 10th directorate of Hengyi Petrochemical Co., Ltd. On May 4, 2018, the restructuring to the transaction was approved by the 14th session of the 10th directorate of Hengyi Petrochemical Co., Ltd. the On May 21, 2018, the transaction was approved by the shareholders of Hengyi Petrochemical Co., Ltd. On August 29, 2018, the revised restructuring report was approved by the 18th session of the 10th directorate of Hengyi Petrochemical Co., Ltd. On November 1, 2018, the transaction was approved by the Mergers and Acquisitions Reorganization Committee of China Securities Regulatory Commission. The anti-monopoly bureau of the State Administration for Market Regulation has issued the decision of not implementing further review for the transaction. CITIC Securities Company Limited (SHSE:600030) acted as the financial advisor, T&C Law Firm acted as legal advisor, and Ruihua Certified Public Accountants, LLP acted as accountant to Hengyi Petrochemical Co., Ltd. Hengyi Petrochemical Co., Ltd. (SZSE:000703) completed the acquisition of Zhejiang Shuangtu New Material Co., Ltd. from Xinghui Chemical Fibre Group Co., Ltd and Fulida Group Holding Co., Ltd. on November 29, 2018.