China has approved the restructuring of Sinochem Group and ChemChina Group, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) said late Wednesday in a statement.

Sinochem Group and ChemChina Group have received approval to implement joint restructuring, and the two will undertake the joint restructuring to become subsidiaries of a new holding company wholly owned by the SASAC, read a statement from Sinochem Group.

This reorganization will better integrate resources, build a world-class comprehensive chemical enterprise and promote the high-quality development of China's chemical industry, said Sinochem Group.

After the reorganization, the new company will cover fields including life sciences, material sciences, the basic chemical industry, rubber tires and urban operations, according to Sinochem Group.

Headquartered in Beijing, Sinochem Group was founded in 1950. It is a leading integrated operator in the oil and chemical industry, providing agricultural inputs (seeds, agrochemicals and fertilizers) and modern agricultural services, and exerting a strong influence on city operation and the non-banking financial services sector.

ChemChina Group is the largest chemical enterprise in China. Based in Beijing, it has production and research and development bases in 150 countries and regions worldwide, and boasts a full-fledged marketing network.