China Global M&A Push, 2005 ~ Nowadays

[TaiShang]

Lianhetech buys UK chemical firm for $126 million
By ANGUS McNEICE in London | China Daily | Updated: 2017-03-04

Major Chinese chemical company Lianhetech has bought UK-based chemical manufacturer Fine Industries in a 103 million pound ($126.5 million) deal, securing an operation with more than 200 jobs and providing Lianhetech with its first European base.

Shenzhen-listed Lianhetech snapped up Fine Industries, based near Middlesbrough, from private equity firm NorthEdge Capital.

Lianhetech is one of China's leading contract chemical manufacturers. It has a market value of $2 billion and operates seven chemical factories, two machinery plants and two research and development centers in the mainland.

Fine Industries will now act as Lianhetech's European headquarters from which it will work with clients in the agricultural, pharmaceutical and performance chemical industries.

"The acquisition provides the capability and expertise needed to develop new products and better utilize Lianhetech's state-of-the-art tech for our customers worldwide," said Lianhetech Chief Executive Maggie Wang.

"We expect Fine Industries' customer base, expertise and capabilities to strengthen our organizational offerings."

Fine Industries manufactures chemicals for agrochemical and pharmaceutical clients. It employs 220 workers and delivered a turnover of 52 million pounds in 2016.

NorthEdge originally invested in Fine Industries in November 2013.

Fine Industries Chief Executive Chris Gowland said that Lianhetech's brand and reputation were well known.

"I expect the union of the companies to further strengthen our position in the global market," he said.

"Becoming part of the Lianhetech team is a very exciting opportunity for Fine Industries and we feel privileged it has selected our business to be the platform for its European expansion strategy."

China has rapidly become the biggest market for chemicals in the world, with an annual growth rate of 23 percent between 2005 and 2013, when China's share of the global chemical market reached 33 percent.

Petrochemical industry research firm ICIS estimated it will have a 40 percent share by 2020.

Ray Stenton, partner at NorthEdge Capital, called Fine Industries the "ideal platform" for Lianhetech's European operations.

Source: http://europe.chinadaily.com.cn/business/2017-03/04/content_28431773.htm

 

[TaiShang]

Chinese firms to continue M&A global expansion
By Sophie He | China Daily | Updated: 2017-03-07

Chinese companies are expected to continue to expand their global reach across a broader mix of industries, said David Fleming, partner and M&A specialist at international law firm Baker McKenzie.

He said uncertainties are unlikely to affect Chinese corporate investments in the Asia-Pacific region－including ASEAN members－fueling growth in industries ranging from food and health to telecoms and tech.

"Deals won't stop," Fleming said.

The expected quickening of cross-border investments from China is also in line with China's Belt and Road Initiative, which promotes business ties with nations along the ancient Silk Road connecting China and Europe, Africa and the rest of Asia.

At the same time, Fleming did see the inevitability for Chinese companies to adopt a more sophisticated approach and be more careful in a number of operations in their overseas expansion.

"To make successful deals, they will have to adjust their action strategies, deal sizes and structures, exchange and cost management policies, and corresponding legal practices in pursuit of mergers and acquisitions," Fleming said.

Based on their previous experience in Europe and elsewhere, companies would have to take a longer-term view and perhaps employ a more selective M&A approach.

Second, they were advised to act early to involve specialist services in the legal and other professional fields in the deal process.

Third, they needed to be more careful and flexible in designing the deal structure in order to mitigate a single company's exposure to any potential risk.

Fleming also said that companies must engage with local regulatory authorities early on in the process.

He also said that companies needed to consider the role that the media could play in a deal.

Deals that are pending regulatory approval are often reported in the media. Companies should be more sensitive to local prevailing social conditions, he said.

At a time of rising populism, companies were advised to be more careful and involve local public relations expertise and the local media.

Overall, Fleming remained confident that Chinese companies would continue to go overseas to seek diversification. He added that 2017 would be a year of continuation.

The Baker McKenzie M&A specialist said Chinese companies were quick learners and would work very hard to pursue their goals.

Legal services in China, including Baker McKenzie's Chinese partners, were making progress to adapt to the needs of their clients, "in order to be where deals are", Fleming said.

 

[TaiShang]

UK investments paying off for Chinese investors
Rupert Reid Sino.uk Updated: 2017-03-15

The undated photo shows national flags of China and UK flutter above a roof in the United Kingdom.[Photo: remen.com]

Chinese investments in the UK have shown excellent growth, according to a new report.

The research, by specialists at Grant Thornton (cited here by the Financial Times), reveals that the top 30 Chinese investments in the UK alone account for an annual revenue of a staggering £9.8 billion.

Furthermore, these holdings have seen triple digit growth over the last two decades, and support in excess of 20,000 British jobs.

Chinese companies have continued to invest heavily in the UK over the last year, despite the uncertainties surrounding Brexit.

We've reported extensively on new acquisitions, including: the recent purchase by CC Land of Hong Kong of the Leadenhall Building in the City of London for the price of £1.15 billion; the sale to Kuang-Chi science of Shenzhen of Gilo Industries Group, one of the UK's most exciting design and engineering companies; and also the massive regeneration project of East London's Royal Docks.

Even though these stories alone represent many billions of pounds of investment, they are just a small selection of the many exciting deals announced during the course of 2016 and 2017 to date.

As we revealed yesterday, demand from China for property investment in particular has been so high that there's been a decline in investment from other countries. For example, London's “super prime” market which has traditionally been the bastion of the Russians, and is now increasingly being 'taken-over' by the Chinese.

 

[TaiShang]

Ant still expects to take over MoneyGram despite rival bid
China Daily, March 16, 2017

A pedestrian passes Western Union Co and MoneyGram International Inc money transfer stores in Athens, Greece. [Photo/Agencies]

Ant Financial Services Group said on Wednesday it still expected to take over money-transfer network MoneyGram International Inc by the second half of 2017, despite an unexpected counterbid by a US competitor, which analysts said could threaten the deal.

Ant Financial did not elaborate how it plans to close the deal on schedule, after US-based Euronet Worldwide Inc offered a higher bid on Tuesday and argued that an all-US deal would avoid regulatory scrutiny toward foreign bidders.

"MoneyGram and Ant Financial continue to work cooperatively under the terms of our merger agreement, and together, we are making progress on schedule toward obtaining all required regulatory and shareholder approvals," Ant Financial said in a statement.

Analysts said the counterbid potentially marked the first major impediment encountered by the Chinese digital payment leader in its increased move to buy foreign assets, but would not thwart its long-term overseas ambitions.

MoneyGram said on Wednesday its board has not changed its recommendation in support of the agreement with Ant Financial. However it added that it would carefully review and consider the proposal by Euronet and determine what would best serve the interests of the company and its shareholders.

Ant Financial is China's biggest internet-finance conglomerate, with its online payment and escrow service, a money-market fund, a credit-rating system and an internet bank. It has set a target to have 2 billion customers globally over the next decade.

Following its acquisition of a stake in Paytm in India and strategic investment in Ascend Money in Thailand, Ant Financial continued its global push in January by offering to purchase MoneyGram for $880 million in cash, or $13.25 per share. But Euronet trumped Ant Financial's bid by offering $15.20 per share.

The Ant buyout would also need green light from watchdogs including the Committee on Foreign Investment in the United States.

The policy cloud has given an edge to Euronet, whose CEO Michael Brown said its offer was superior to that of Ant Financial's because the latter was "fraught with uncertainty and challenges at every level".

"The Ant Financial deal has to be delayed, as MoneyGram's board has the fiduciary duty to assess the new offer and decide whether it is superior to the old one," said Ling Xiao, partner of Huiye Law Firm, which specializes in overseas investment and financing.

Whatever the result, however, the current setback would not hinder Ant Financial's broader overseas goals, said Li Chao, an analyst with IT consultant iResearch Consulting Group.

"Even if it failed, it's a stand-alone case for Ant Financial. It will continue to push ahead with partnerships and investments beyond China's borders, both for business growth and for a decent profile ahead of its anticipated initial public offering," Li said.

 

[c-dome1]

http://www.globes.co.il/en/article-chinas-midea-buys-israeli-co-servotronix-1001176475

China's Midea buys Israeli co Servotronix

Yuval Azulai and Tali Tsipori

The Chinese robotics and electronics giant has acquired control of the Petah Tikva based automation solutions developer, at a company value of $170 million.

Chinese electronics giant Midea Group has acquired control of Israeli company Servotronix at a company value of $170 million, the Petah Tikva based company founded by CEO Dr. Ilan Cohen reported this evening.

Founded in 1987, Servotronix develops automation solutions focused on motion control for a diverse range of industries including robotics, printing, textiles, medical equipment, renewable energy, CNC and machine tools, food and beverages, and electronics. Servotronix operates worldwide and has subsidiaries in Germany and China.

Midea, which has a company value of $28 billion and is listed on the Shenzen stock exchange, focuses on household goods, air-conditioning, robotics and automation.

Servotronix reports that its development center in Petah Tikva will continue to operate after the acquisition, while deepening its strategic cooperation with Midea.

Dr. Ilan Cohen said: “This alliance will provide Servotronix with significant leverage for our global operations and put Servotronix in a leadership position in the field of robotics, control and automation, with China being a major market in this field. We are proud that Midea has recognized our success, and we are confident that this strategic alliance will benefit the company, our customers and our employees. Servotronix will continue its operations with even more enthusiasm and strength."

Midea chairman and CEO Paul Fang said, “This strategic alliance represents another milestone of Midea’s expansion in industrial automation and intelligent manufacturing. We believe that Servotronix’ technological leadership and innovation in motion control will generate significant synergies with Midea in terms of value chain integration and new market development. By leveraging each other’s complementary capabilities and resources, the two companies will join forces to develop exciting new products and explore growth opportunities going forward.”

Servotronix has 200 employees, most of them in Petah Tikva. It is unclear, how much of a controlling interest Midea is buying. Ilan Cohen is expected to sell part of his $26 million stake in the company and another founder, Ruth Wertheimer is expected to sell her entire $56 million stake. Other senior managers and employees are also expected to sell shares.

http://www.globes.co.il/en/article-chinas-midea-buys-israeli-co-servotronix-1001176475

 

[onebyone]

China's HNA Is Buying a NYC Office Tower for $2.21 Billion
by David M Levitt
March 21, 2017

Chinese conglomerate HNA Group Co. is leading a deal to acquire Manhattan’s 245 Park Ave. for $2.21 billion, one of the highest prices ever paid for a New York skyscraper, two people with knowledge of the negotiations said.

HNA may be involved with at least one partner on the purchase, said the people, who asked not to be identified because the transaction is private. The 1.7 million-square-foot (158,000-square-meter) office tower, with tenants including JPMorgan Chase & Co., is being sold by Brookfield Property Partners LP and its 49 percent partner in the property, the New York State Teachers’ Retirement System.

The deal, should it be completed, would bring Chinese ownership to the heart of midtown Manhattan’s financial core: the towers just north of Grand Central Terminal along Park Avenue. JPMorgan’s principal executive office is at 270 Park, diagonally across East 47th Street from 245 Park. Three blocks to the north is the Waldorf Astoria hotel, which China’s Anbang Insurance Group Co., acquired for $1.95 billion in 2015 and is now converting to mostly condominiums.

Clement Wei, a spokesman for HNA, didn’t immediately reply to an email sent before regular business hours in Haikou, where the company is based.

HNA has made a string of acquisitions lately, totaling more than $30 billion since last year, according to data compiled by Bloomberg. Its targets have included hotel operator Hilton Worldwide Holdings Inc., technology company Ingram Micro Inc., asset manager SkyBridge Capital and earlier this month the company that runs Caijing magazine’s website.

The 245 Park Ave. purchase was reported earlier Monday on the website of The Real Deal, a publication that covers New York real estate.


https://www.bloomberg.com/news/arti...-in-2-21-billion-deal-to-buy-nyc-office-tower

 

[TaiShang]

Aircraft Recycling International buys US company
Xinhua, March 22, 2017

Aircraft Recycling International Limited (ARI), a member company of China Aircraft Leasing Group Holdings Limited (CALC) , has acquired US aviation service provider Universal Asset Management, Inc (UAM).

As a wholly-owned US subsidiary of ARI following the acquisition, UAM will be responsible for ARI's aircraft recycling business overseas, and a part of its global disassembly and distribution platform, according to an announcement made by CALC on Monday.

CALC said the acquisition allowed ARI to become a full value-chain aircraft solutions provider and the company planned to optimize its global solutions for aging aircraft to meet the demands of Chinese market.

Specializing in asset management of aging aircraft, ARI is now building the largest aircraft recycling center in the Asia-Pacific region in Harbin, capital of Northeast China's Heilongjiang province.

 

[Shotgunner51]

Top 10 Outbound M&A Deals Aiding China’s Ambitions in Luxury

• Yiling Pan @SiennaPan
• March 17, 2017

China has been one of the most active players in the global merger and acquisition market in recent years, reflecting the country’s ongoing attempt to transform itself from an export-oriented nation to one driven by consumption. Major luxury companies have thus been increasingly favored by Chinese buyers for the values their brands can offer Chinese consumers.

Some of the more high-profile cross-border deals involve corporations like Anbang Insurance Group, Fosun International, and HNA Tourism, which have snapped up firms in the upscale hospitality and luxury real estate sector in Europe and the United States starting roughly from 2014, in line with the China’s bullish bet on the tourism industry. On the luxury and fashion front, Shandong-based textile company Ruyi Group and a Shenzhen-based clothing firm Ellassay, or Gelisi in Chinese pinyin, have been making significant acquisitions in recent years.

The following is a round-up of the 10 most significant deals in the luxury sector by Chinese companies after the 2008 financial crisis. Jing Daily highlights some of the latest developments that the acquired foreign firms having been making under the leadership of their new Chinese owners.

1. Anbang Insurance Group – Waldorf Astoria NY & Strategic Hotels and Resorts

The Beijing-based insurance company Anbang has indicated its avid interest in buying up high-end hotels in the last two years. After months of negotiations, it first struck a groundbreaking deal with Hilton Group in February 2015 to purchase the iconic Waldorf Astoria New York for $1.95 billion, officially setting foot in the U.S. market.

In September 2016, Anbang completed another deal with the Blackstone Group, acquiring Strategic Hotels and Resorts for $6.5 billion. The transaction made the insurer the owner of properties that included JW Marriott Essex House in New York and the Four Seasons in Washington D.C.

Waldorf Astoria New York recently officially closed its doors for renovations and plans to reopen in two to three years.

2. Fosun International – Club Méditerranée

n a year-long battle with other interested stakeholders, the Shanghai-based, Hong Kong-listed Fosun International Group took control of the luxury resort company Club Med in January 2015 for 939 million euros. Fosun’s acquisition successfully helped Club Med expand to the booming Chinese market. The French company has opened resorts in China’s major tourism cities such as Sanya and Guilin. Its expansion will continue to speed up in the next couple of years, as the resort operator sees bright prospects in China’s luxury travel market.

3. Fosun International – Folli Follie Group

As early as May 2011, Fosun International acquired about a 9.5 percent stake in Folli Follie group, forming a strategic alliance with the Greek luxury company. Folli Follie Group owns luxury clothing and leather brand Folli Follie and jewelry brand Links of London. In a company statement published on Fosun’s official website, Fosun said the partnership will benefit Chinese consumers with access to high-quality fashion goods and will also help Folli Follie tap into the promising Chinese market.

4. HNA Tourism Group – Hilton Worldwide & Carlson Hotels

China’s HNA Tourism Group is a leading force in the global travel industry, whose business units span from aviation and shipping, to finance and hospitality. Over the past year, HNA has aggressively snapped up large deals in the hospitality sector, in parallel with the group’s goal to become an international leader in the industry.

In October 2016, HNA Tourism Group first bought a 25 percent stake in Hilton Worldwide Holdings for $6.5 billion from the Blackstone Group. Later in December, it closed a deal with Carlson Hotels that kicked off in April of last year, becoming the sole owner of Carlson.

5. Shandong Ruyi Group – SMCP Group

Ruyi Group, a Shandong-based textile firm that is relatively unknown to foreign dealers, purchased a controlling stake of French firm SMCP Group, which owns accessible luxury brands Maje, Sandro, and Claudie Pierlot. The amount of the March 2016 deal was undisclosed, but estimates put it close to 1.3 billion euros. According to a report by Women’s Wear Daily in October, Maje, Sandro, and Claudie Pierlot had strong revenue growth in China around the time of Ruyi’s investment.

6. Shandong Ruyi Group – YGM Trading

Earlier this month, Ruyi Group closed another deal with the Hong Kong-listed YGM Trading, which owned the British heritage brand Aquascutum, for $117 million.

7. Shenzhen Ellassay Fashion Co.Ltd – Ed Hardy and Laurel

From late 2015 to early 2016, Shenzhen-based Ellasay Fashion Company purchased a stake in East Light International Investment Company, which managed the operation of German fashion brand Laurel and American brand Ed Hardy in China. The deal allowed Ellassay to take over Laurel and Ed Hardy’s Chinese operations and become a fashion clothing firm that owns several brands.

8. Shenzhen Ellassay Fashion Co.Ltd – IRO

Following the previous efforts, Ellassay continued its aggressive expansion in 2017. Earlier this month, the company announced its purchase of a controlling stake in the parent company of French luxury brand IRO for RMB 790 million.

9. Gangtai Holding – Buccellati

The high-end jewelry sector has also been keenly pursued by Chinese companies. In December 2016, the Italian premium jewelry brand Buccellati sold an 85 percent stake to Gangtai Group, a Chinese corporation in Gangsu Province. According to the information on the company’s official website, Gangtai is a Shanghai-listed company that specializes in jewelry and gold businesses in China.

10. Zhejiang Geely Holding Group – Volvo

In 2010, the domestic Chinese company Geely’s acquisition of the Swedish vehicle brand Volvo was considered a milestone for the global expansion into the automobile market by China. Geely bought a 100 percent stake of Volvo from its owner, Ford, for $1.3 billion.

Geely has supported Volvo’s research and investment in new models, as well as backed its expansion into a premium auto market since the acquisition, according to a report by Reuters in 2016. Volvo recently worked with Geely in developing a new car brand named “Lynk & Co.”, which is expected to hit the market later this year.

https://jingdaily.com/ma-deals-chinas-luxury/

 

[TaiShang]

Sinopec nails acquisition of Chevron African assets
China Daily, March 23, 2017

Technicians from Sinopec and local African workers at an oil exploration site in Sudan. [Photo/China Daily]


Asia's biggest oil refiner China Petrochemical Corp, known as Sinopec, said on Wednesday it had nailed an agreement to acquire a refinery and key assets of Chevron South Africa and Chevron Botswana for about $900 million.

Sinopec said it has signed a sales and purchase agreement with Chevron Global Energy Inc to acquire its 75 percent stake in Chevron South Africa Proprietary Ltd and its 100 percent holding in Chevron Botswana Proprietary Ltd.

Apart from the refinery, under the deal Sinopec has also bought a retail business and storage terminals from Chevron.

The remaining 25 percent interest of the Chevron South Africa is held by a consortium of Black Economic Empowerment shareholders and an employee trust, according to Chevron spokesman Braden Reddall.

Once approved, it will be Sinopec's first refinery on the African continent.

An analyst said the acquisition was meant to convert the site into a profitable storage terminal, using the energy behemoth's downstream experience and advantages.

"Chinese oil companies have become more active in chasing refinery assets worldwide as oil majors reshape asset portfolios," said Li Li, energy research director at ICIS China, a consulting company that provides analysis of China's energy market.

"Sinopec used to focus mostly on the domestic market, but now it's interfacing more with the global market, with its ample expertise and experience."

According to Sinopec, the acquired assets include Chevron's 100,000 barrels per day capacity Cape Town refinery, its lubricants manufacturing plant in Durban, a network of more than 820 service stations with 220 convenience stores across South Africa and Botswana, and storage tanks and oil depot distribution facilities.

With a growing middle class, demand for refined petroleum in South Africa has been increasing at an average annual rate of nearly 5 percent during the past five years, currently reaching a total of approximately 27 million metric tons, Sinopec said.

The company said it has a proven capability to deliver complex large-scale projects, with its annual capacity of more than 10 million tons of refined products and with an annual ethylene production of more than 1 million tons.

French oil group Total SA and commodity traders Glencore Plc and Gunvor Group were also among those bidding for a 75 percent stake in Chevron's South African downstream assets.

The agreement has been filed with the Chinese government and remains subject to regulatory approvals in South Africa and Botswana, Sinopec said.

 

[cirr]

China inks $4.6 billion deal for Australia mine project

AFP March 24, 2017

The Pilbara region in Western Australia is rich in resources such as iron ore (AFP Photo/Christian Sprogoe)

A state-owned Chinese construction giant Friday sealed a deal to build a Aus$6 billion (US$4.6 billion) mining infrastructure project to tap into resource-rich northwestern Australia.

Sydney-based BBI Group (BBIG) said the agreement with the China State Construction Engineering Corporation (CSCEC) to develop the mine, port and rail project would create a new gateway to the Pilbara region for iron ore exporters.

China -- the world's biggest commodities consumer -- is Australia's largest trading partner, with the signing taken place during a meeting between Prime Minister Malcolm Turnbull and Premier Li Keqiang in Canberra.

"To have signed such an important MOU for our project in the presence of the Australian Prime Minister and the Chinese Premier confirms the strength and international significance of the BBI Project," the firm said in a statement.

"BBIG is currently engaged with a number of potential Chinese iron ore... customers."

Some 3,300 jobs are expected to be created during the construction period from 2018, BBI said, with 900 permanent positions on offer when the facilities are operational.

The BBI Group is majority owned by the Todd Corporation, one of New Zealand's largest companies.

https://www.yahoo.com/news/china-inks-4-6-billion-deal-australia-mine-064919686.html

 

[Shotgunner51]

Mar 27, 2017 @ 05:00 PM
China is Now the World's Largest Source of Outbound Hotel Investment
Ed Fuller, Contributor

2016 was a banner year for Chinese outbound hotel investment as market participants invested a record-high $9.4 billion in North America, Europe and other global lodging markets, nearly doubling the $4.9 billion they spent during the previous year. There’s every reason to believe their appetite for hotel real estate is as strong as ever despite a less certain global political and economic outlook this year and recently-tightened capital outflow restrictions at home.

Let’s look at 2016. In their quest to build scale and brand recognition,

1. Anbang Insurance Group bought Strategic Hotels & Resorts for $5.5 billion, including virtually all of Strategic’s luxury US hotels.
2. China Life Insurance forged a joint venture with a sovereign-wealth fund to buy a $2 billion portfolio of limited service hotels from Starwood Capital Group.
3. Cindat Capital Management concluded a $571 million joint venture with Hersha Hospitality Trust for seven hotels in New York City.
4. HNA Group (HNA) announced plans to purchase about 25% of Hilton Worldwide Holdings - in addition to its earlier acquisition of Carlson Hotels Inc.

For some companies like HNA Group, these investments supported their other tourism-related businesses. For others, like Anbang, the recent deregulation of China’s insurance industry allowed them to capitalize on stable investment opportunities abroad.

No end in sight for China’s buying spree

Will this spree end anytime soon? Hardly. Across all industries, China spent nearly $2 billion acquiring foreign assets last year, outpacing 2015 when they spent $61 billion on offshore international mergers and acquisitions, according to the Rhodium Group.

The location of these investments explains a lot about why so much money has flowed out of China in recent years. They went mainly into mature markets in the US and Europe and into safe sectors like established hotel brands. This suggests that Chinese companies are interested in protecting themselves against domestic market risks, including the devaluation of the Yuan that has fallen 10.5% against the dollar.

Another contributing factor is the vibrancy of the outbound Chinese travel market on which the Chinese hotel companies want to capitalize. Last year, more than 100 million Chinese tourists visited global gateway cities like New York, London, Paris, Tokyo and Sydney, thanks in part to cheaper airfares and more frequent flight schedules. This volume is expected to grow at an annual rate of 8.5% through 2021.

Meanwhile, industry experts expect mega-deals such as last year’s Marriott International acquisition of Starwood Hotels & Resorts to make consolidation among the rest of the industry inevitable, even as others contend that the top hotel chains are already too big and too complex to merge. That hasn’t stopped the rumors. Late last year, although denied, industry chatter abounded about InterContinental Hotel Group being pursued by first Anbang, then Accor.

Earlier this year, hospitality development consultant, JLL Hotels & Hospitality Group issued a report predicting that Chinese capital will be on the lookout for opportunities in the US and Europe in 2017 even as fewer deals are expected to be finalized especially on transactions above $5 million due to China’s tightened currency outflow policies.

The Group’s SVP Lauro Ferroni said, “Hotel brands will always look to bolster their supply pipeline and the surest way to grow is by acquiring operators with management and franchise contracts.” He added that portfolios with a full range of offerings from service levels to geography are most attractive to investors. “We expect to see more consolidation among operators and real estate owners alike due to key players’ need to remain competitive - and Chinese investors will always be seeking trophy assets.”

This morning, as I was putting the finishing touches onto this blog, the Wall Street Journal reported that China’s HNA Group had agreed to acquire a 24.9% stake in US investor OM Asset Management for $446 million. OM Asset Management is an arm of UK insurer Old Mutual PLC. The acquisition came on the heels of HNA’s announcement last week that it was buying 245 Park Avenue, a 1.8-milliion-square-foot trophy skyscraper in Manhattan for $2.21 billion.

Looks like we’re in for an interesting year ahead!

https://www.forbes.com/sites/edfull...ce-of-outbound-hotel-investment/#7ca8fc756a5f

 

[onebyone]

China starting to acquire some technology companies

China's outbound Merger and Acquisition activity surged in 2015 and 2016 with a broad universe of acquirers executing transactions with an increase in pace and deal size.

This surge has been driven by a range of macro factors, including the pursuit of long-term and sustainable growth, consumption by the rising middle class, and a favorable regulatory and financing environment. Chinese buyers are becoming more active and experienced in M and A and are comfortable executing public takeovers and arranging acquisition financing in overseas markets.

Global mergers and acquisitions set a record in 2015 with transaction volume reaching nearly $5 trillion, driven by the globalization of the M&A market and the emergence of Asia Pacific as a key player in it. Asia Pacific companies’ appetite for M and A has increased due to a range of macro factors, with overall Asia Pacific M and A volume approximately doubling from $748 billion in 2013 to $1.5 trillion in 2015.

Chinese buyers are playing an increasing role in Asia Pacific M and A activity, with their volume nearly tripling from $259 billion in 2013 to $735 billion in 2015. In addition, seven of the 10 largest cross-regional acquisitions out of Asia Pacific in the first four months of 2016 were announced by Chinese buyers.

China is transforming its economy from export-driven manufacturing to one driven by technology, industrial know-how and consumption. The strategic priorities of Chinese buyers have evolved to reflect this shift. Chinese companies are acquiring North American and European companies to enhance technological capabilities and move the nation’s industrial sector upstream, to obtain high-value brands that can be offered to the maturing consumer in China, and to build scale and distribution in strategically important markets and geographies. Chinese companies are looking beyond market share in China to global markets, with their sights set on becoming market leaders globally.

China invested $9.9 billion into new Silicon Valley firms in 2015 and made an additional $3.5 billion in tech investments in the first nine months of last year.

- Boston-based artificial intelligence start-up Neurala
- China bought US tech companies make rocket engines for spacecraft, sensors for autonomous navy ships, and printers that make flexible screens that could be used in fighter-plane cockpit
- In May 2015, Haiyin Capital invested an undisclosed in XCOR Aerospace, a Mojave, Calif., commercial space-travel company that makes spacecraft and engines and has worked with NASA
- In 2016, Tianjin Tianhai bought Ingram Micro for $6.07 Billion
- In 2015,WeEn Semiconductor acquired NXP Power Semiconductors for $1.8 billion. ISSI was acquired by a Chinese consortium for $765 million; and Hua Capital Management Co. Ltd. Acquired OmniVision Technologies for $1.9 billion.
- In 2016, a Silicon Valley start-up called Kateeva that makes machines that print flexible screens raised $88 million from a group of Chinese investors.









http://www.nextbigfuture.com/2017/03/china-starting-to-acquire-some.html

 

[qwerrty]

magic leap is a fraud. alibaba's $800 m down the drain

 

[TaiShang]

CEFC buys 20% of Wall Street broker
By Ren Jiaojin | China Daily | Updated: 2017-03-31

Besides acquiring the 19.9 percent equity stake for $18 per share and becoming the largest stakeholder, CEFC will also provide Cowen with $175 million in debt financing in the following six years under the strategic partnership that was signed.[Photo/China Daily]

Shanghai-based group's move makes it Cowen Group's biggest stockholder

Shanghai-based energy and financial services company, China Energy Company Ltd, said it had agreed to acquire a 20 percent stake in US brokerage company Cowen Group Inc for $100 million.
The deal, the latest in a series of investments by Chinese firms in US companies, makes CEFC the biggest shareholder of the New York-based company and also gives CEFC the right to appoint three directors to Cowen.

The move into Wall Street comes only one month after CEFC invested $1.8 billion for a 40 years oil concession in Abu Dhabi's biggest onshore oilfield.

The head of the brokerage said there were obvious synergies between the two groups.

"Our two companies have complementary functional expertise, industry focus, geographic coverage and business networks, which creates a unique business development opportunity," said Cowen CEO Peter Cohen.

"This partnership will accelerate growth in Cowen's core areas of expertise: investment banking, equities, research and investment management,"

Besides acquiring the 19.9 percent equity stake for $18 per share and becoming the largest stakeholder, CEFC will also provide Cowen with $175 million in debt financing in the following six years under the strategic partnership that was signed.

CEFC, in the deal, is also buying into deep experience shared by Cowen's top executives.

Cowen's CEO once served in the same role at Wall-Street-renowned investment bank Shearson Lehman Brothers.

Investors reacted to the acquisition by pushing up Cowen's share price by 19 percent.

Under the strategic partnership, CEFC said it hopes to introduce Cowen's advanced business experience in investment banking, alternative investments and research into other areas such as new energy, medicals and high-tech.

"We highly value the experience and advantages Cowen has in industrial research and capital market services," said Ye Jianming, CEO of CEFC.

"The partnership between CEFC and Cowen in investment, capital and asset management will help both parties to better allocate resources and create bigger value," Ye added.

"It will also accelerate wider and deeper collaboration."

The Shanghai-based energy trading company wants to have Shanghai as Cowen's headquarters for China or even the Asia-Pacific region.

Such a development would connect the US financial services company with the Shanghai International Financial Center and Shanghai Technology Innovation Center, providing services for domestic companies to move abroad.

Cowen President Jeff Solomon said that the US broker would continue to run independently after receiving the $100 million investment from CEFC.

One analyst said the latest deal showcased the trend to new sectors for Chinese acquisitions.

"The Chinese private sector's international acquisition focus has always been on the industrial side," said He Jingtong, a business professor at Nankai University in Tianjin.

 

[Bussard Ramjet]

magic leap is a fraud. alibaba's $800 m down the drain

Neurala is also a fraud. Another millions gone in drain.

Also, this report is based on a report by NYT, which was a classic fear tactic, the so called "China threat."

But Chinese members here, being flattered by all those articles that deliberately hype things, to create the "China threat" scenario, just love it.

Ironic!