Deal would create China’s third-largest refiner by capacity Plan would be latest attempt to reform state-owned enterprises A merger of Sinochem Group and China National Chemical Corp. would create a new oil-refining challenger to established state-run behemoths that dominate the country’s fuel-making business. The prospective tie-up , combining two companies with assets of more than $100 billion, would create the largest oil refiner behind China Petrochemical Corp. and China National Petroleum Corp., according to data from Wood Mackenzie Ltd. The move signals a new strategy by policy makers to boost competition rather than weaken the dominant state-run companies by spinning off assets, according to Nevyn Nah, a Singapore-based analyst with Energy Aspects Ltd. “The Chinese authorities are serious about weakening the stranglehold that Sinopec and PetroChina have on the oil sector,” Nah said, using the names of the publicly listed companies. “For the longest time, they’ve been talking about […]