China Buys Stake in BP; Investment Is `Welcomed’
China bought a stake in BP Plc, its second investment in a European oil company, as the nation seeks to secure resources and boost returns on the world’s largest foreign-exchange reserves.
BP, Britain’s largest company by market value, is aware a Chinese sovereign fund bought shares and welcomes the investment, spokesman David Nicholas said today. The fund purchased just less than 1 percent of BP, worth about 1 billion pounds ($1.97 billion), the Daily Telegraph reported.
The BP stake adds to Chinese investments in France’s Total SA, Europe’s third largest oil company, and Rio Tinto Group, the world’s third-largest miner. China is buying assets across the globe as commodity prices rise to records and as its foreign currency reserves swell to $1.68 trillion.
Read also Chinese fund builds up £1bn stake in BP from Daily Telegraph.