On December 22, 2016, Shandong Hengyuan Petrochemical Co., Ltd (SHPCL). and Shell Refining Company Berhad (SRC) transferred equity in Kuala Lumpur. The Chinese Ambassador to Malaysia Huang Huikang attended the equity transfer ceremony. This marked the first successful overseas merger of China refining industry.

After delivery, SHPCL acquired 51% of equity of SRC at the price of 66.3 million Yuan and had the absolute control over this company. The enterprise would supply 40% of oil products to Malaysia every year; meanwhile SHPCL launched an offer for acquisition of remaining 49%. 

The Chairman of SHPCL Wang Youde said that, the company would continue to cooperate with Shell petrol station in Malaysia and implement the fair price of the third party in next ten years. 

This merger will complement advantageous resources of both parties mutually. SHPCL will bring the advanced product upgrading technology internationally to SRC to realize organic combination of mature oil processing technology in China and broad market demands in Malaysia; meanwhile, depending on advantages of listing company, SHPCL may realize perfect integration of industry and capital.