China Global M&A Push, 2005 ~ Nowadays

[Shotgunner51]

China's Ctrip Expands Global Reach With $1.74 Billion Skyscanner Deal
Thu Nov 24, 2016 | 12:35pm IST

Chinese travel giant Ctrip.com International Ltd has extended its global reach after it agreed to buy travel search website Skyscanner Holdings Ltd in a deal valuing the UK-based company at around 1.4 billion pounds ($1.74 billion).

Ctrip, China's biggest online travel company, said the majority cash deal for Skyscanner would help strengthen its global position as the ticketing-to-hotels group looks to diversify its business.

The firm, which has backing from Chinese internet giant Baidu Inc and U.S. travel company Priceline, topped up its warchest for acquisitions earlier this year when it raised over $2 billion through shares and convertible notes.

"Skyscanner will complement our positioning at a global scale, and we will leverage our experience, technology and booking capabilities to help Skyscanner," Ctrip co-founder Liang Jianzhang said in a statement.

Scotland-based Skyscanner helps users to compare prices from different travel sites when searching for flights, hotels and rental cars. It currently has 60 million monthly active users and is available in over 30 languages.

Skyscanner, which was reported to be exploring a sale or an initial public offering, was valued at $1.6 billion in a funding round in January, when it raised 128 million pounds from a group of investors that included Malaysia's sovereign fund, Khazanah Nasional and Yahoo Japan Corp.

Ctrip said it expected to complete the deal by the end of 2016. After the deal, Skyscanner's current management team would continue to manage the firm's operations independently.

Ctrip's shares were up 9.2 percent at $44.75 in extended trading.

($1 = 0.80 pounds)

(Reporting by Ankit Ajmera in BENGALURU and Adam Jourdan in SHANGHAI; Editing by Maju Samuel and Stephen Coates)

http://in.reuters.com/article/skyscanner-holdings-m-a-ctrip-com-intl-idINKBN13J0IA

 

[grey boy 2]

China becomes net capital exporter: report
(People's Daily Online) 14:34, November 24, 2016

China became a net capital exporter in 2015, marking the first time that Chinese investment overseas exceeded foreign investment in China, according to a report issued on Nov. 23.

The Blue Book of Chinese Enterprise Globalization (2016), compiled by the Center for China and Globalization, pointed out that China’s outward foreign direct investment (OFDI) in 2015 topped $145.6 billion, up 18.3 percent year on year. This also marks the first time that China’s OFDI ranked second in the world. Meanwhile, the amount of foreign capital in China was $135.6 billion in 2015.

The report added that the world witnessed rapid growth of Chinese enterprises making overseas purchases or participating in mergers in 2015-16. Overseas mergers and acquisitions have topped $110 billion since the beginning of 2016, while the number for 2015 as a whole was $106.8 billion.

In particular, enthusiasm for investments was apparent in the U.S., Europe and some Asian countries, according to the report, which noted that 2015 to 2016 was a “golden era” for Chinese enterprises investing overseas.

Addressing a seminar on Nov. 23, CCG senior researcher He Weiwen, who is also a former economic and commercial counselor at the Chinese consulates in New York and San Francisco, pointed out that Chinese enterprises tend to invest heavily in real estate development, but there is inadequate focus on high-end manufacturing, such as in the bio-pharmaceutical industry.
http://en.people.cn/n3/2016/1124/c90000-9146521.html

 

[AndrewJin]

@Shotgunner51 I guess Sovereign Wealth Fund could be a major role?
M&A abroad backed up by Chinese government is critical to China's national interests and geopolitics.

 

[艹艹艹]

http://www.vccircle.com/news/techno...ner-bought-china-online-travel-business-ctrip
Thursday, November 24, 2016 - 09:37IST
China' Ctrip to acquire Skyscanner for $1.7 bn

BY DEEPTI CHAUDHARY

Nasdaq-listed Ctrip.com International Ltd, which provides travel services including accommodation reservation, transportation ticketing, packaged tours and corporate travel management, has agreed to acquire global travel search site Skyscanner Holdings Ltd, for nearly £1.4 billion ($1.74 billion) in its bid to grow bookings for hotels, rental cars and flights for travelers.

The purchase consideration consists of mainly cash, the remainder consisting of Ctrip ordinary shares and loan notes, the company said in a statement on Wednesday.

The boards of directors of the Ctrip and Skyscanner have approved the transaction, which is subject to customary closing conditions, and is expected to close by the end of 2016. Edinburgh-headquartered Skyscanner's current management team will continue to manage Skyscanner's operations independently as part of the Ctrip group.

Skyscanner enables users to compare prices from hundreds of travel sites when searching for flights, hotels, and rental cars. It ranks as one of the top online travel brands based on search interest, serving 60 million monthly active users and available in over 30 languages.

"Skyscanner is one of the largest travel search platforms in the world," said James Jianzhang Liang, co-founder and Executive Chairman of Ctrip. "This acquisition will strengthen long-term growth drivers for both companies. Skyscanner will complement our positioning at a global scale, and we will leverage our experience, technology and booking capabilities to help Skyscanner."

"Today's news takes Skyscanner one step closer to our goal of making travel search as simple as possible for travelers around the world. Ctrip and Skyscanner share a common view – that organizing travel has a long way to go to being solved. To do so requires powerful technology and a traveler-first approach,” Gareth Williams, co-founder and chief executive officer of Skyscanner said.

• India connection
  Earlier this year, Indian online travel company MakeMyTrip Ltd had entered into an agreement with Ctrip.com, under which the Chinese travel services firm hadagreed to invest $180 million(Rs 1,200 crore) through convertible bonds into the online travel agency.
  
  In October, in the biggest consolidation move in the online travel agency (OTA) space in India, NASDAQ-listedMakeMyTrip Ltd agreed to buy ibibo Group, which is co-owned by South African technology group Naspers Ltd and Chinese investment firm Tencent, in a stock deal.
  
  Now the five-year convertible notes that Ctrip holds in MakeMyTrip will also be converted into common equity, resulting in Ctrip having an approximately 10% stake in the combined entity, making it the second largest shareholder.
  
  Other significant shareholders of MakeMyTrip include SAIF Partners, T Rowe Price, Tiger Global and company founder and chief executive Deep Kalra.
  
  Founded in 2003, Skyscanner, on the other hand, has a separate India website.
  
  The country recorded a 145% increase in revenue in 2014-15 compared to a year ago, according to aHindu Business Linereport on May 22, 2015, citing a company official.
  
  In India, Skyscanner allows users to search for airfares from both airlines’ websites and online booking platforms such ascleartrip.com,makemytrip.com,yatra.com,goibibo.comandmusafir.com, among others.
  
  For hotel bookings, Skyscanners allows reservations through hotel sites as well as aggregators such asbooking.com, OYO, Agoda,hotels.comand Expedia, among others.
  
  Skyscanner offers a fare comparison and booking facility from aggregators and fleets as well as vehicle type.
  
  Meanwhile, Yatra Online Inc., the company that runs Yatra.com, one of India’s top online travel agencies (OTAs) is set tohit the public marketin the US soon.
  

 

[Shotgunner51]

Germany’s Chinese investment problem
European firms are being snapped up by China companies, and that’s causing headaches in Berlin.
By Janosch Delcker 11/25/16, 5:38 AM CET Updated 11/25/16, 5:56 AM CET


HAMBURG, Germany — In the conflict between Beijing, Berlin and Brussels over skyrocketing investment by Chinese firms in European high-tech industries, China has a major advantage: It has a plan.

Germany doesn’t. Neither does the European Union.

German Minister for Economic Affairs and Energy Sigmar Gabriel | EPA/Bernd Von Jutrczenka

While trade experts warn that a recent spending spree by Chinese companies — many of them supported by the Chinese government — will harm the competitiveness of European business in the long-term, Berlin and Brussels are struggling to come up with a political response.

“As we don’t have EU-owned companies we cannot [behave] the same [as China],”
European Commission Vice President Jyrki Katainen told POLITICO.​

It doesn’t make things easier that European businesses have little incentive to put a stop to the billions flowing out of China, which provide them with capital in the short term and help them secure access to the growing Chinese market.

“To have a major Chinese shareholder is a huge benefit in opening doors,”
Gordon Riske, CEO of Germany-based Kion, parts of which were acquired by Chinese state-owned Weichai Power in 2012, said during this week’s Hamburg Summit, a conference on EU-China economic relations.​

As European officials, business leaders and lobbyists met with their Chinese counterparts inside the grandiose Hamburg Chamber of Commerce for two days of talks, they reaffirmed that Chinese investment was still welcome in Europe. That’s despite warnings last month from German Economy Minister Sigmar Gabriel that Germany was sacrificing “its companies on the altar of free markets.”

“We are well aware that investment and openness are the elements that drive our economy forward,” former Chancellor Gerhard Schröder said in a speech at the event. “Germany should therefore not take a defensive approach to Chinese investment in our economy.”​

He echoed calls by business officials like Nathalie Errand, senior vice president of Airbus Group in Belgium, who assured Chinese business delegates that “We as Airbus … don’t like protectionism.”

Made in China

China’s mission to buy up companies in Europe is part of a plan called “Made in China 2025,” designed to turn the country into a manufacturing superpower.

“We don’t want to fight a trade war because this will benefit nobody,”
Chinese Premier Li Keqiang told German Chancellor Angela Merkel in a press conference last June, when she was in Beijing.​

Behind the scenes, however, conflict is growing. And while Chinese investors target countries across Europe, Germany has become the primary battleground.

“Germany is the center of Europe,” Nan Cunhui, chairman of Chinese electrical company Chint Group, told the audience in Hamburg. “Brands, manufacturing technologies, in every aspect Germany is the leader. Other countries, they need to learn from Germany. Germany is the big brother of Europe, and it needs to play a leading role.”​

During the first six months of 2016, Chinese businesses made more investments in Germany than in the past five years combined, according to accountancy company EY.

Overall, Chinese investment in Europe could top €27 billion this year, the European Commission estimates. Katainen, who is the commissioner for jobs, growth, investment and competitiveness, stressed that, in general, foreign investment is positive for the European economy.

“Where Chinese capital is creating new industrial companies or things like that, it is a completely positive thing,” he said.​

However, critics say that with some of its recent investments, China is distorting competition.

“China uses an outbound industrial policy, using government capital and highly opaque investor networks to facilitate high-tech acquisition abroad,”
a report by the Mercator Institute for China Studies, to be published in December, states.​

Gabriel strikes back

When Gabriel’s office announced in the fall that it would withdraw its previous approval of the acquisition of German firm Aixtron SE by China’s Grand Chip Investment, it was widely seen as a way of telling Beijing that Berlin is monitoring what’s happening closely.

But Gabriel’s hands are tied, with limited ability to block a merger or acquisition. Under its Foreign Trade Act, Germany can only intervene if an investment poses a threat to national security.

Gabriel’s plan is to expand the definition of threat. However, such a change would most likely have to implemented at European level.

That means that Gabriel will need the support of other EU countries for his mission to take on the Chinese. It won’t be easy. In many Central and Eastern European countries, Chinese investment is considered a “silver bullet” for their faltering economies.

What is certain is that Gabriel can’t count on the support of the European Commission.

“We cannot interfere with these sensitive issues, so we just try to create the general rule base,” said Katainen.​

Eastern promise

“Made in China 2025” will, at least in its early stages, create massive business opportunities in China for foreign investors who deliver cutting-edge industrial equipment and core technologies.

European companies want their slice of the cake, but there is increasing criticism of the Chinese government for granting only limited access to foreign investors, while planning to eventually push them out of the market.

“Yes we are welcome there — up to a point,” said Mauro Petriccione, deputy director general in the European Commission’s trade department. “But how much guarantee do we have that this welcome will stay, in spite of inevitable change in Chinese policy?”​

Experts like Björn Conrad, vice president of research at the Mercator Institute for China Studies, who was part of a team that analyzed “Made in China 2025,” agree. He said that once Chinese firms reach a comparable technology level to foreign investors, a whole spectrum of industrial policies in their favor will kick in.

When it comes to investment, both abroad and at home, the Chinese have a plan, and they seem determined to stick to it.

“One aim of ‘Made in China 2025’ is to replace foreign technology with Chinese technology,” said Jost Wübbecke of Mercator Institute for China Studies, “And that’s okay if it’s based on market rules, but if it’s based on political interference, then it becomes problematic.”​

http://www.politico.eu/article/germanys-chinese-investment-problem-sigmar-gabriel-eu/

 

[AndrewJin]

Alles Gute!

 

[Shotgunner51]

China has consolidated the strategy for quite a while, and had put into action. See below related news from last year about CIC, which is one of the four PRC sovereign wealth funds, had started their European operation.

Exclusive: China Investment Corporation Eying Investments in Germany

The Chinese sovereign wealth fund China Investment Corporation is looking to invest in Germany, Handelsblatt has learned.

“We are looking at different options,” Li Keping, chief investment officer of CIC, told Handelsblatt. The fund’s focus lies on companies with expertise in industry 4.0, he said.

European firms needn’t be worried about the communist Chinese leadership interfering in their business though, Mr. Li noted. “We are not seeking direct control of companies in our portfolio,” he said, adding that the fund only targets a minority stake in most cases.

It is also monitoring the sale of state property in Greece, Mr. Li added.
​

The China Investment Corporation is in charge of investing Chinese foreign exchange reserves worth $750 billion. It recently teamed up with German insurance giant Allianz in a bid for highway service stop chain Tank&Rast. In the past, the investment firm also considered acquiring a stake in carmaker Daimler.

https://global.handelsblatt.com/bre...ment-corporation-eying-investments-in-germany​

 

[Shotgunner51]

@Shotgunner51 I guess Sovereign Wealth Fund could be a major role?
M&A abroad backed up by Chinese government is critical to China's national interests and geopolitics.

Yes sovereign wealth funds, there are four (excluding Silk Road Fund, HKMA) now, are key drivers. They are mandated by central government to change China's international financial landscape, i.e. turn excessive reserves (usually cash, sovereign bonds) into outbound direct investments (ODI, equities through M&A or greenfield).

Different from oil monies (say Saudi, Emerati or Norwegian) which purely go for financial return (sometimes they do also gain political influence), Chinese funds have clear industrial or geo-economic mandates, perhaps even geo-strategic.

Read this:

Sovereign Wealth Funds: The New Intersection of Money and Politics
Christopher Balding
https://defence.pk/threads/new-pivo...ign-welfare-funds.455072/page-2#ixzz4R2JCnZEQ//​

 

[Rajaraja Chola]

That's great news. Congrats

 

[ahojunk]

This year, Chinese companies have racked up 47 deals to buy German companies worth a total of €10.3 billion, according to Thomson Reuters, compared with 29 deals worth €263 million in all of 2015.

========
| Thu Nov 24, 2016 | 3:14pm EST | Reuters
Chinese official defends Chinese takeovers of German firms - newspaper

Nov 24 Chinese Vice Premier Liu Yandong on Thursday defended efforts by Chinese companies to take stakes in German companies, saying such deals benefitted both sides.

"Concerns about a 'sell-off of Germany' are completely unfounded," Liu told Germany's Handelsblatt newspaper days after news that U.S. authorities had recommended blocking the sale of German chip equipment maker Aixtron by China's Fujian Grand Chip Investment Fund (FGC).

Liu said China would continue to encourage its firms to invest in Germany despite the U.S. decision and a move earlier this month by Germany Economy Minister Sigmal Gabriel to withdraw approval of the 670-million-euro takeover deal.

The Chinese official met on Thursday in Hamburg with German Foreign Minister Frank-Walter Steinmeier, who said Germany would continue to welcome Chinese investments, but that such deal could not be a 'one-way street.'

Gabriel made a similar point during a visit to China earlier his month, urging the Chinese government to reduce barriers for German firms wanting to do business there.

So far this year, Chinese investors have agreed 47 deals to buy German targets, worth a total of 10.3 billion euros, according to Thomson Reuters data, up from 29 deals worth 263 million euros in 2015.

Liu told the newspaper that Chinese firms accounted for less than one percent of foreign investments in Germany, but German firms had invested considerably more in China.

"If Chinese-German investments become more balanced and frequent in both directions, then the economic cooperation of both countries will lead to more advantages," she said.

Liu told the newspaper that Chinese investments in German firms had helped stabilise those businesses, while opening up new markets and securing employment.

Aixtron this week said it was in close touch with U.S. and German authorities about answering their concerns about the company's takeover by Fujian.

The company is seen as having a bleak future as a standalone company as it struggles with overcapacity in a market dominated by Chinese buyers.

Liu also warned the West against imposing anti-dumping duties against Chinese steel.

"The improper use of measures aimed at supporting business and trade, such as anti-dumping duties, would not be at all helpful for solving overcapacity in the world steel industry," the paper quoted her as saying.

"Blaming the problems currently faced by European and U.S. steel exporters on overcapacity in the Chinese steel industry and its export subsidies is completely baseless and unfair," she said. (Reporting by Andrea Shalal)


********

Oh, the Americans would rather see Aixtron going down the drain rather than the Germans getting some benefit.
Whether we like it or not, it's still down to money. If you have the money, you can call the shots.
If you don't, nobody really cares what you can do, i.e. nothing much.

 

[TaiShang]

This year, Chinese companies have racked up 47 deals to buy German companies worth a total of €10.3 billion, according to Thomson Reuters, compared with 29 deals worth €263 million in all of 2015.
U
========
| Thu Nov 24, 2016 | 3:14pm EST | Reuters
Chinese official defends Chinese takeovers of German firms - newspaper

Nov 24 Chinese Vice Premier Liu Yandong on Thursday defended efforts by Chinese companies to take stakes in German companies, saying such deals benefitted both sides.

"Concerns about a 'sell-off of Germany' are completely unfounded," Liu told Germany's Handelsblatt newspaper days after news that U.S. authorities had recommended blocking the sale of German chip equipment maker Aixtron by China's Fujian Grand Chip Investment Fund (FGC).

Liu said China would continue to encourage its firms to invest in Germany despite the U.S. decision and a move earlier this month by Germany Economy Minister Sigmal Gabriel to withdraw approval of the 670-million-euro takeover deal.

The Chinese official met on Thursday in Hamburg with German Foreign Minister Frank-Walter Steinmeier, who said Germany would continue to welcome Chinese investments, but that such deal could not be a 'one-way street.'

Gabriel made a similar point during a visit to China earlier his month, urging the Chinese government to reduce barriers for German firms wanting to do business there.

So far this year, Chinese investors have agreed 47 deals to buy German targets, worth a total of 10.3 billion euros, according to Thomson Reuters data, up from 29 deals worth 263 million euros in 2015.

Liu told the newspaper that Chinese firms accounted for less than one percent of foreign investments in Germany, but German firms had invested considerably more in China.

"If Chinese-German investments become more balanced and frequent in both directions, then the economic cooperation of both countries will lead to more advantages," she said.

Liu told the newspaper that Chinese investments in German firms had helped stabilise those businesses, while opening up new markets and securing employment.

Aixtron this week said it was in close touch with U.S. and German authorities about answering their concerns about the company's takeover by Fujian.

The company is seen as having a bleak future as a standalone company as it struggles with overcapacity in a market dominated by Chinese buyers.

Liu also warned the West against imposing anti-dumping duties against Chinese steel.

"The improper use of measures aimed at supporting business and trade, such as anti-dumping duties, would not be at all helpful for solving overcapacity in the world steel industry," the paper quoted her as saying.

"Blaming the problems currently faced by European and U.S. steel exporters on overcapacity in the Chinese steel industry and its export subsidies is completely baseless and unfair," she said. (Reporting by Andrea Shalal)


********

Oh, the Americans would rather see Aixtron going down the drain rather than the Germans getting some benefit.
Whether we like it or not, it's still down to money. If you have the money, you can call the shots.
If you don't, nobody really cares what you can do, i.e. nothing much.

I think after the revelations on widespread spying and theft by the US state agencies on German political and economic intetests, media created negative
perception on China has changed. Now it is understood that Europe should not put all of its trust on the US, but diversify. This also may explain the reaction to the AIIB.

 

[ahojunk]

| Mon Nov 21, 2016 | 5:31am EST | Reuters
Exclusive: China's Anbang may buy $2.3 billion in Japanese property from Blackstone - sources

Blackstone CEO Stephen Schwarzman speaks during an interview at Schwarzman College of Tsinghua University in Beijing, China, September 9, 2016. REUTERS/Jason Lee/File Photo

By Junko Fujita | TOKYO

China's Anbang Insurance Group Co [ANBANG.UL] is in talks to buy as much as $2.3 billion in Japanese residential property assets from Blackstone Group (BX.N), two people involved in the discussions said, in what would be Japan's biggest property deal since the global financial crisis.

The U.S. asset manager is discussing the sale of properties it had bought from investors, including in a deal with General Electric Co (GE.N) in 2014, according to the sources, who asked not to be identified.

The talks are in an advanced stage, one of the sources said.

For Anbang, seeking to diversify its assets globally, the deal would be its first foray into Japanese real estate. The Chinese firm last year lost out to a Japanese developer Hulic Co (3003.T) in bidding for property asset manager Simplex Investment.

A Blackstone official declined to comment. Anbang officials did not provide an immediate comment.

The deal could fetch about 260 billion yen, the sources said, marking the biggest Japan property transaction since a fund managed by Morgan Stanley (MS.N) bought 13 hotels from ANA Holdings Inc (9202.T) for 281 billion yen in 2007, the height of the property investment boom.

Japan's property market has rebounded since Prime Minister Shinzo Abe took office in late 2012 and championed ultra-easy money policies that have driven down interest rates and boosted asset prices in a bid to pull Japan out of decades of deflation.

Prices for office properties have rebounded to levels where investors find it hard to justify future returns, but some say residential prices can rise further on housing demand in the biggest cities, where growth is robust.

The assets Blackstone is planning to sell are chiefly apartment buildings aimed at middle-class residents. They include properties in Japan's largest cities - Tokyo, Nagoya and Osaka - that Blackstone bought in 2014 from GE's property unit for 190 billion yen. The U.S. asset manager bought some residential assets from other investors that are also part of the deal.

It is not immediately clear how much of a return on its investment Blackstone may make through a sale to Anbang.

Privately owned Anbang has assets worth more than 800 billion yuan ($116 billion). It agreed in March to buy Strategic Hotels & Resorts also from Blackstone for $6.5 billion as it expands its U.S. hotels portfolio. In the same month the Chinese insurance group aborted a $14 billion bid for Starwood Hotels & Resorts Worldwide Inc.

It also owns New York's famous Waldorf Astoria Hotel.


(Reporting by Junko Fujita; Editing by William Mallard and Martin Howell)

 

[ahojunk]

China reiterates healthy development of outbound investment
2016-11-28 15:11 | Xinhua | Editor: Mo Hong'e

China reiterated Monday that it will stick to its opening up policy and "going out" strategies, facilitating investment abroad while guarding against risks, according to a government statement.

The nation will adhere to outbound investment management policies that allow enterprises to be the principal subjects, follow market principles, conform to international practices and follow the government's direction, said the statement.

The record-filing system will be the main means of managing outbound investment and authorities will verify some enterprises' outbound investment projects in accordance with relevant regulations, said the statement.

Outbound investment has grown quickly in recent years and played an important role in deepening mutually beneficial cooperation between China and other countries as well as promoting the restructuring of the domestic economy, said the statement.

The nation's outbound investment policies and management principles are clear with the aim of promoting healthy and sustainable development of outbound investment, realizing mutual benefits and achieving common development, according to the statement.

The statement was jointly released by the National Development and Reform Commission (NDRC), Ministry of Commerce, the People's Bank of China and the State Administration of Foreign Exchange (SAFE).

 

[ahojunk]

China will 'not own' Chicago Exchange
2016-12-01 08:30 | China Daily | Editor: Xu Shanshan

A view of the Chicago Stock Exchange. (File photo)​

Purchase by Chinese investors is subject to national security review

The Chicago Stock Exchange Inc said Chinese interests will control 49.5 percent of the exchange if a proposed sale of the company gains regulatory approvals.

In a bid to allay fears over its pending acquisition, the Chicago Stock Exchange, or CHX, revealed its proposed ownership structure in a Nov 23 filing with the U.S. Securities and Exchange Commission.

"The Chinese government will not own or control CHX after the transaction is completed," a representative from the exchange said in an email on Tuesday.

In February, the 134-year-old Chicago Stock Exchange reached an agreement to be acquired by a group of Chinese investors. As of January, the Chicago Stock Exchange handled just 0.5 percent of U.S. trading, according to market researcher TABB Group.

The Committee on Foreign Investment in the U.S., or CFIUS, must approve the transaction. CFIUS, made up of representatives from several federal agencies, including the departments of Treasury, Defense, State and Homeland Security, reviews proposed foreign acquisitions, mergers and takeovers of U.S. businesses that may raise national security concerns.

News reports have suggested that the panel may be concerned over whether the Chinese government would have influence over the exchange's owners.

The CHX representative said it expects to hear from CFIUS by the end of the year. CHX management would remain in place following completion of the deal.

According to the SEC filing, the new owners would include a Chinese company, Chongqing Casin Enterprise Group Co, which would own 20 percent of the exchange's parent company.

The filing said other proposed owners include Chongqing Jintian Industrial Co, Chongqing Longshang Decoration Co and Raptor Group, the family office of former hedge-fund manager Jim Pallotta, which also owns part of Italian soccer team AS Roma.

U.S. investors, the filing said, include Jay Lu, a U.S. citizen, as well as Anthony Saliba, a board member of CHX Holdings Inc.

The CHX hopes the acquisition will help it lure Chinese companies looking to list in the United States. Lawmakers including U.S. Representative Robert Pittenger, a Republican from North Carolina, have raised questions about the deal.

The Wall Street Journal reported that Pittenger said at a House Financial Services Committee meeting earlier this month that he had met with SEC Commissioner Michael Piwowar about the sale of the Chicago Exchange.

Piwowar "expressed some of the same concerns regarding the corruption inside Chinese firms, as well as their complacency and the lack of transparency within them," Pittenger said according to the Journal.

Pittenger's office did not respond to a request for comment on the report.


********

In this world, there is no free lunch.
Money talks the loudest.
.

 

[TaiShang]

Chinese buys of European firms up 40%
China Daily, December 3, 2016

Chinese dealmakers have completed 170 European acquisitions worth US$90 billion so far this year, according to analysis by UK business advisory firm Deloitte.

That is 40 percent up on 2015 when 122 deals were finalized. Deloitte's analysis, which covers the period to Nov 22, did not include last month's announcement that Chinese online travel company Ctrip is buying UK-based travel search company Skyscanner for US$1.75 billion.

Including the Skyscanner deal, acquisitions in 2016 were worth US$90.35 billion.

"I think there's a strong view from Chinese business that they need to internationalize, with less reliance purely on domestic markets," said Angus Knowles-Cutler, China Services Group chairman for Deloitte.

"Skyscanner is the classic kind of deal that ticks most of the boxes," he told China Daily. "It's the Chinese buying an e-commerce business in the UK, with strong management that it will leave in place and that serves a Chinese middle class that spends money on travel."

Deloitte found that Germany attracted the biggest number of acquisitions by Chinese companies, with 34 deals. The UK was second with 32, then France with 21.

The average disclosed deal value was US$900 million, or US$350 million if the mega-deal involving ChemChina's US$43 billion takeover of Swiss pesticides and seeds group Syngenta, which is still subject to regulatory approval, is excluded.

Chinese companies looked mainly to the UK to acquire stakes in financial services and the leisure industry, in particular hotels and football clubs, while they looked to Germany to invest in high-tech manufacturing.

Knowles-Cutler predicted a strong 2017 in terms of investment, with increased emphasis on e-commerce. He said that the UK referendum vote to leave the European Union has not acted as a deterrent among Chinese investors.

"I've spoken to about 25 major Chinese businesses over the last couple of months since Brexit," he said. "I would say overall there's a net positive among Chinese businesses about Brexit. Sterling has depreciated in value, assets and investment opportunities are cheaper for investors."

Knowles-Cutler said that Chinese investors will be looking for reassurances from the UK government that the "Golden Era" of relations with China, inaugurated by former Prime Minister David Cameron and President Xi Jinping, will move forward.

"I think they are positive about the new government's attitudes toward China," he said. "They took great heart from the last prime minister's agreement on the Golden Era and they'll be looking to see if that attitude is going to continue."

The number of Chinese deals in Europe this year massively outdoes the 52 deals with disclosed deal value of US$8.2 billion which were achieved by European acquirers in China.