Chinese investment company Yantai Xinchao to buy oil assets in western Texas for $1.3 bn

Chinese investment holding company Yantai Xinchao Industry Co has struck a deal to buy oil properties in western Texas for $1.3 billion through a limited liability partnership.

Shanghai-listed Yantai Xinchao on Saturday said in a securities filing that it was acquiring oil properties in West Texas as part of a deal to buy an investment company called Ningbo Dingliang Huitong Equity Investment Center in a deal values at 8.3 billion yuan ($1.3 billion).

The oil assets in Texas counties of Howard and Borden, are being acquired from two Nevada-based companies, Tall City Exploration and Plymouth Petroleum.

Yantai Xinchao said that the deal has been approved by the US Committee on Foreign Investment.

The deal comes a year after another Chinese company Goldleaf Jewelry Co acquired Texas-based energy firm ERG Resources for $665 million.

Yantai Xinchao is a property developer and also produces cable and wire products. It also manufactures and markets wool, cotton, and linen fabrics and apparel and produces machinery parts and chemical dyeing materials.