Business Digest, February 19, 2013

Oil and gas major China Petroleum & Chemical (Sinopec) says it is weighing the potential acquisition of oil and gas assets owned by parent China Petrochemical Corp. It does not have a definite timetable but says such an acquisition will be part of its business plan. In response to speculation that proceeds from its HK$23.9 billion share placement this month will be used for such an acquisition, it said the proceeds might be used as working capital, to repay loans and fund project investments. Eric Ng

The State Council in Beijing approved plans to take part in the building of a high-speed railway line in Iran, two people familiar with the matter said. The project would cost at least US$1 billion, but the firms participating had not yet been chosen, they said. The United States, the European Union and their allies have tightened sanctions on Iran for a nuclear programme they argue is meant to develop atomic bombs. China and Iran have maintained "normal business co-operation", Foreign Ministry spokesman Hong Lei said. Bloomberg