China Global M&A Push, 2005 ~ Nowadays

[ahojunk]

Gaelectric sells wind farms to China General Nuclear Power
Facilities will generate enough electricity to power 120,000 homes

Wed, Dec 7, 2016, 18:45
Barry O'Halloran

Gaelectric either built the 14 wind farms itself or bought them, and will continue to manage the facilities

Renewable energy specialist Gaelectric is selling 14 Irish wind farms worth an estimated €400 million to China General Nuclear Power’s European energy arm (CGNEE).

Gaelectric said on Wednesday it had agreed to sell 14 wind farms with a capacity of 230 mega watts (MW) – enough electricity to power about 120,000 homes – to CGNEE.

The businesses that the Irish company is selling are made up of 10 wind farms with the capacity to generate 184MW in total, and another four with the potential produce 46MW, which will be up and running in the middle of next year.

Neither side revealed the purchase price, but industry sources estimate the value of the assets at €400 million-plus.

Gaelectric chief executive Barry Gavin said the company intended using the proceeds to pay off debts and support other renewable energy projects.

Accounts
In its most recent accounts the group had €200 million in debt on March 31st, 2015, all of it borrowed to help pay for the development of its wind and solar farms and its energy-storage facilities.

All 14 wind farms are in Ireland, with seven on each side of the Border. Gaelectric either built the farms itself or bought them, and will continue to manage the facilities after their sale to CGN.

“Our contract with CGNEE for trading and asset management will form the basis of a continuing relationship with a very significant new player in the Irish, European and international energy market,” Mr Gavin said.

CGNEE chief executive Dr Wei Lu said the group looked forward to working with the Irish company in the future.

 

[Shotgunner51]

Chow Tai Fook Enterprises confirms Baha Mar acquisition
Dec 13, 2016

Hong Kong-based Chow Tai Fook Enterprises Ltd (CTFE), an investor in casino resorts in Macau, Australia and Vietnam, confirmed on Monday that it has signed an agreement to own and operate Baha Mar (pictured in a rendering), a stalled casino resort project in the Caribbean archipelago of the Bahamas.

The Hong Kong company did not provide any financial details regarding the acquisition price of Baha Mar. The former developer of Baha Mar – Baha Mar Ltd, led by businessman Sarkis Izmirlian – had previously mentioned a total budget of US$3.5 billion for construction of the casino resort.

The purchase agreement allows for the acquisition of all the issued capital of Perfect Luck Assets Ltd, a special purpose vehicle established by Baha Mar’s secured creditor – China Export-Import Bank – that holds the Baha Mar assets, CTFE said in Monday’s release.

“CTFE will dedicate significant, ongoing investment and resources towards the pre-opening and opening of Baha Mar Resort,” said Graeme Davis, president of CTFE’s Bahamas subsidiary, in a statement included in the release.

CTFE said it plans to invest US$200 million to support “pre-opening activities as well as the redevelopment of the … beachfront Crystal Palace Casino Hotel site, and the development of additional family-friendly amenities, entertainment venues and offshore island facilities”.

The casino scheme is to begin a phased opening in April next year, Perry Christie, Prime Minister of the Bahamas, said last week.

CTFE said in Monday’s release that phase one of the project would include the hotel, casino, convention centre and golf course. The company estimated that more than 1,500 jobs would be created for the first phase.

The company added that it is recruiting a “team of executives from internationally recognised brands”. It added that it plans to begin recruiting employees for the casino resort in the New Year.

In its latest press release, CTFE said it is already in discussions with hotel brands previously involved in the Baha Mar project, including Grand Hyatt and SLS Hotels. The company also intends to bring its own subsidiary, Rosewood Hotel Group, as a luxury hotel operator at Baha Mar, it added.

“We are delighted to have CTFE join Baha Mar Resort as the owner and developer, leveraging its expansive network and resources to open new markets and opportunities for the Bahamas that will deliver great benefits to the island and our people,” said the Prime Minister of the Bahamas in a statement also included in the release.

“The government is confident that CTFE has the precise capabilities and track record to successfully complete and operate Baha Mar Resort from both a lodging and casino perspective,” added Mr Christie.​

Speaking to reporters on Monday, Mr Christie did not disclose the sale price of Baha Mar, adding that the negotiated agreement between CTFE and China Export-Import Bank was still sealed by the court.

Privately-held CTFE’s businesses span hospitality, property development and retail, including retail chain Chow Tai Fook Jewellery, part of Hong Kong-listed Chow Tai Fook Jewellery Group Ltd.

Henry Cheng Kar Shun, chairman of CTFE, has been a non-executive director of Macau casino operator SJM Holdings Ltd since 2013.

CTFE acquired a controlling stake in a US$4-billion Vietnam casino project in September 2015. The company is also involved in the development of a casino resort in Brisbane, the capital of the Australian state of Queensland.


https://www.ggrasia.com/chow-tai-fook-enterprises-confirms-baha-mar-acquisition/

 

[Shotgunner51]

Goodbaby acquires famous foreign brands, then makes them profitable
2016-12-06 08:54China Daily

Time-honored household brand names from Europe and North America have become profitable after being acquired by Goodbaby Group, China's largest manufacturer and retailer of baby-care products.

Song Zhenghuan, chairman of Goodbaby Group, said that Evenflo, a leading US maker of car safety seats, high chairs and other products for young children, made a profit of about $14 million in 2016, after being incorporated into the group. According to the company's 2015 annual report, Evenflo's revenue of Evenflo was around $231 million in 2015, a 16.5 percent increase over 2014.

Cybex GmbH, a German producer of premium car seats, has doubled its profits in 2016, reaching $200 million, after being acquired by the group, Song said.

Both the companies were acquired by Goodbaby in 2014, which gave the group wide exposure in overseas markets, in addition to the booming Chinese market. Song attributed the success mostly to the group's innovation and marketing strategies.

"We now have researchers from 34 countries," said Song. "We have a tradition to play the national anthems before holding important meetings. It takes a while to play the national anthems for all our workers."​

Now, the Suzhou-based company has seven research centers in Germany, France, Austria, the Czech Republic, the United States, Japan and in Kunshan of eastern China's Jiangsu province. It also established a brand management and European business center in Bayreuth, Germany, a US business center in Boston and a financing and legal affairs center in China's Hong Kong.

"Goodbaby has registered 7,400 patents since it was founded in 1989," Song said. "It is bigger than the patents of our top 10 competitors combined. Every year, we register more than 500 patents."​

In 2015, Goodbaby registered more than 620 patents worldwide and won more than 100 product design and safety awards.

"We are proud of our innovation capability and safety control technologies. Even in the US and European markets, where products are frequently recalled, we haven't made any products that should be recalled since we entered the overseas market in 1996."​

According to the group, its laboratory has been recognized by international authorities, including SG, TUVNord and CPSC in the US. The products examined and recognized by the laboratory can be sold at the US and European markets directly.

Being the largest supplier of strollers in North America, Europe and China, Goodbaby has stamped its name on 80 percent of its products, while, before 2016, 80 percent of its manufactured products were branded by other world leading companies.

Now about 70 percent of Goodbaby's business is in overseas markets in Asia, North America and Europe.

http://www.ecns.cn/business/2016/12-06/236529.shtml

 

[TaiShang]

Goodbaby acquires famous foreign brands, then makes them profitable
2016-12-06 08:54China Daily

Time-honored household brand names from Europe and North America have become profitable after being acquired by Goodbaby Group, China's largest manufacturer and retailer of baby-care products.

View attachment 361560

Song Zhenghuan, chairman of Goodbaby Group, said that Evenflo, a leading US maker of car safety seats, high chairs and other products for young children, made a profit of about $14 million in 2016, after being incorporated into the group. According to the company's 2015 annual report, Evenflo's revenue of Evenflo was around $231 million in 2015, a 16.5 percent increase over 2014.

Cybex GmbH, a German producer of premium car seats, has doubled its profits in 2016, reaching $200 million, after being acquired by the group, Song said.

Both the companies were acquired by Goodbaby in 2014, which gave the group wide exposure in overseas markets, in addition to the booming Chinese market. Song attributed the success mostly to the group's innovation and marketing strategies.

"We now have researchers from 34 countries," said Song. "We have a tradition to play the national anthems before holding important meetings. It takes a while to play the national anthems for all our workers."​

Now, the Suzhou-based company has seven research centers in Germany, France, Austria, the Czech Republic, the United States, Japan and in Kunshan of eastern China's Jiangsu province. It also established a brand management and European business center in Bayreuth, Germany, a US business center in Boston and a financing and legal affairs center in China's Hong Kong.

"Goodbaby has registered 7,400 patents since it was founded in 1989," Song said. "It is bigger than the patents of our top 10 competitors combined. Every year, we register more than 500 patents."​

In 2015, Goodbaby registered more than 620 patents worldwide and won more than 100 product design and safety awards.

"We are proud of our innovation capability and safety control technologies. Even in the US and European markets, where products are frequently recalled, we haven't made any products that should be recalled since we entered the overseas market in 1996."​

According to the group, its laboratory has been recognized by international authorities, including SG, TUVNord and CPSC in the US. The products examined and recognized by the laboratory can be sold at the US and European markets directly.

Being the largest supplier of strollers in North America, Europe and China, Goodbaby has stamped its name on 80 percent of its products, while, before 2016, 80 percent of its manufactured products were branded by other world leading companies.

Now about 70 percent of Goodbaby's business is in overseas markets in Asia, North America and Europe.

http://www.ecns.cn/business/2016/12-06/236529.shtml

Sounds like the DJI of young children safety products.

Nice brand with a right approach to expansion, brand build up and innovation pooling.

 

[Shotgunner51]

Sounds like the DJI of young children safety products.

Nice brand with a right approach to expansion, brand build up and innovation pooling.

There are millions of Chinese companies, and Goodbaby is a typical story.

1. Technology is always the key, notice the company has 7400 patents, more than the next 10 competitors combined. It the key to ensure best products to be delivered, meeting most stringent quality requirements by various government regulators.
   
2. Backed by a gigantic & efficient manufacturing base and supply chain in Suzhou.
3. Adopts multiple-brand marketing approach which can effectively sell to global customers of different wealth levels, different cultures and varying needs.

 

[TaiShang]

There are millions of Chinese companies, and Goodbaby is a typical story.

1. Technology is always the key, notice the company has 7400 patents, more than the next 10 competitors combined. It the key to ensure best products to be delivered, meeting most stringent quality requirements by various government regulators.
   
2. Backed by a gigantic & efficient manufacturing base and supply chain in Suzhou.
3. Adopts multiple-brand marketing approach which can effectively sell to global customers of different wealth levels, different cultures and varying needs.

I think one bright spot of this (and resembling) company is their blending ability. What I mean is the ability to localize not only the management but also the product, from marketing to after-sale services.

The most powerful US MNCs are those that one feels like the brand is one of ours.

I once watched various commercials that Coca Cola airs in various countries. For example, in the Middle East, during the fasting month, they air quite traditional commercials with local faces, music and cultural objects.

No boycott can disturb such localized presence.

 

[Shotgunner51]

I think one bright spot of this (and resembling) company is their blending ability. What I mean is the ability to localize not only the management but also the product, from marketing to after-sale services.

The most powerful US MNCs are those that one feels like the brand is one of ours.

I once watched various commercials that Coca Cola airs in various countries. For example, in the Middle East, during the fasting month, they air quite traditional commercials with local faces, music and cultural objects.

No boycott can disturb such localized presence.

Well said. Yes other than the usually mentioned technology (patents, R&D), perhaps marketing is the most critical skill that Chinese MNC need to master. In marketing, how to communicate with your customers is an important subject, Goodbaby acquiring a brand that local customers can associate with is one good tactic.

 

[艹艹艹]

http://www.nationmultimedia.com/news/Startup_and_IT/30302474

Sanook Online changes name to Tencent (Thailand)
December 20, 2016 12:06
By Asina Pornwasin
The Nation

Portal to become wide-ranging platform for all kinds of content in 2017


CHINESE holding company Tencent yesterday officially changed the name of its wholly owned subsidiary Sanook Online to Tencent (Thailand), and announced that it would make the Thai unit serve all kinds of digital content across platforms next year.

Tencent (Thailand)’s flagship products are Sanook.com, which has 30 million active monthly users, and JOOX, the largest music-streaming platform in Thailand, which has 22 million users.

Managing director Krittee Manoleehagul said Tencent (Thailand) would focus on three businesses. The news portal will be led by Sanook Online and iPick, entertainment and multimedia by JOOX and Tencent Games, and services by Top Space, an advertising agency.

In the new year, the company will launch new services on each platform and synergise its services across platforms.

“The company’s vision and mission for 2017 are to create content and service platforms that correspond to the lifestyle of every online consumer,” Krittee said.

He said that currently, most of the company’s revenue came from branded content and advertising. JOOX generates revenue from paid services. Meanwhile, Top Space and WeChat are flagship products that help monetise the company’s platforms.

In 2017, each platform will get a new product or service. For example, the firm has soft-launched NoozUp on the news-portal platform. It will launch VStation to offer live interactive content with artists via JOOX. It will focus more on WeChat in enhance the ability of Thai businesses to penetrate the Chinese market.

Krittee said that after Tencent began investing in Sanook five years ago, it had been adding services to the portal.

“This year, we successfully launched JOOX as an online music-steaming platform. It is the right time to show that we are Tencent in Thailand by offering various services to people daily across all platforms.

“Today, we are changing the company’s name from Sanook Online to Tencent (Thailand), changing the company’s logo, and changing its colour from red to blue,” he said.

In 2017, the company will provide platforms for user-generated content, expand its existing platforms’ features, launch new platforms, and partner with Thai start-ups.

“For example, we have partnered with SkillLane for learning services and Ookbee for comic content. We also have a local partner in Laos to provide Muan.la, which was launched in November and has been successful, with 2 million page views per day. In the future, we will have more partners as well as investing in content-related start-ups,” Krittee said.

He said Tencent (Thailand) believed that the trend was a mix between professionally generated content and user-generated content. Tencent started at Sanook.com with developing its own content and moved into partnered content. The next step is to offer user-generated content platforms as well as social-media-featured products.

Sresuda Winitsuvan, head of content at Tencent (Thailand), said Sanook.com had around 36 million monthly users currently, of which around 70 per cent come via mobile devices and 40 per cent through social media.

Krittee said the changes being implemented by the company reflected its commitment to developing new products and services and to expanding its business partnerships in various dimensions so that it can offer a great variety of quality content to users, engaging them as co-creators.

“Our first priority is serving people in Thailand. Tencent (Thailand) aims to become the leading creator, developer and provider of quality content and services that comprehensively respond to all Thai consumers’ needs. At the same time, we also strive to help develop and promote smaller companies and start-ups to complement our platforms.”

 

[Shotgunner51]

Chinese firm acquires global aircraft manufacturing giant
2016-12-17 16:47:32 CRIENGLISH

Wanfeng Auto Holding Group holds a handover ceremony
to acquire Diamond Aircraft Industries in Canada, on Tuesday, Dec. 13, 2016.
[Photo: The Paper]​

Wanfeng Auto Holding Group has announced that a handover ceremony was held in London, Ontario, Canada on Tuesday following the formal acquisition of Diamond Aircraft Industries, the world's third-largest general aviation aircraft manufacturer, The Paper reports.

This purchase is the latest move for Wanfeng, based in Zhejiang province, to build a whole-industry chain in aviation, after it acquired three aircraft manufacturing projects in Czech Republic and an aviation training school in Canada, as well as built its own aviation town in Zhejiang. Chen Ailian, board chairman of Wanfeng, revealed that the first plane produced and named by Wanfeng is to make its maiden flight next summer.

Established in 1981, Austrian-headquartered Diamond Aircraft Industries produces a range of light aircraft and has been engaged in the development of a single-engine jet aircraft, the Diamond D-Jet.

Founded in 1994, Wanfeng has businesses in such fields as auto parts manufacturing, robotic and intelligent equipment, magnesium alloy, and financial investment, with annual sales of 3 billion U.S. dollars.

This file photo shows general aviation aircraft made by Diamond Aircraft Industries.
[Photo: The Paper]​

China's Wanfeng Takes Control Of Diamond Canada
by Samantha Cartaino
December 21, 2016, 11:27 AM

Wanfeng Aviation, the Canada-based division of a Chinese conglomerate, this week confirmed that it recently acquired a controlling, 60 percent stake in Diamond Aircraft Industries, Inc. (aka Diamond Canada). As part of the deal announced on December 20, Diamond Canada has acquired all rights to the seven-passenger DA62 twin and four-passenger DA40 single from its Austrian parent company Diamond Aircraft Industries GmbH (Diamond Austria). Production and type-design responsibility for these models will transfer from Austria to Diamond’s London, Ontario site by the end of 2017.

Wanfeng’s investment may ultimately help to rekindle plans for the single-engine D-Jet program, which was put on hold in 2013 due to lack of funds. In a press statement, Diamond commented: “The scope of the investment in the Canadian Diamond companies also includes D-Jet Corp. The future of the D-Jet and/or possible derivative aircraft is subject to ongoing review.”

Diamond Austria will remain independent of Diamond Canada, but will support the new owners with production and development activities. It will retain type design and production responsibility for the DV20 and DA42 models. Existing licensed production arrangements for the Chinese market are not related to the Wanfeng investment. Diamond Austria also will continue to develop the Dart turboprop aerobatic trainer and the DA50 models.

Wanfeng’s investment also does not affect authorized service centers. Existing Diamond authorized distribution partners will continue to provide service to customers. Furthermore, factory direct sales will be handled by the manufacturer of each model.

Peter Maurer will continue as CEO of Diamond Canada. Wanfeng group’s Frank Chen has been appointed chairman. All current models produced by both Diamond Austria and Diamond Canada will continue to be branded as Diamond Aircraft. There will be no changes in the Diamond Austria management team.

“This investment will support expanded production, sales and service activities globally, with a strengthened focus on the U.S. market,” said Diamond Aircraft.​

http://www.ainonline.com/aviation-n...1/chinas-wanfeng-takes-control-diamond-canada

​

 

[TaiShang]

Chinese firm acquires global aircraft manufacturing giant
2016-12-17 16:47:32 CRIENGLISH

View attachment 362224
Wanfeng Auto Holding Group holds a handover ceremony
to acquire Diamond Aircraft Industries in Canada, on Tuesday, Dec. 13, 2016.
[Photo: The Paper]​

Wanfeng Auto Holding Group has announced that a handover ceremony was held in London, Ontario, Canada on Tuesday following the formal acquisition of Diamond Aircraft Industries, the world's third-largest general aviation aircraft manufacturer, The Paper reports.

This purchase is the latest move for Wanfeng, based in Zhejiang province, to build a whole-industry chain in aviation, after it acquired three aircraft manufacturing projects in Czech Republic and an aviation training school in Canada, as well as built its own aviation town in Zhejiang. Chen Ailian, board chairman of Wanfeng, revealed that the first plane produced and named by Wanfeng is to make its maiden flight next summer.

Established in 1981, Austrian-headquartered Diamond Aircraft Industries produces a range of light aircraft and has been engaged in the development of a single-engine jet aircraft, the Diamond D-Jet.

Founded in 1994, Wanfeng has businesses in such fields as auto parts manufacturing, robotic and intelligent equipment, magnesium alloy, and financial investment, with annual sales of 3 billion U.S. dollars.

View attachment 362228
This file photo shows general aviation aircraft made by Diamond Aircraft Industries.
[Photo: The Paper]​

China's Wanfeng Takes Control Of Diamond Canada
by Samantha Cartaino
December 21, 2016, 11:27 AM

Wanfeng Aviation, the Canada-based division of a Chinese conglomerate, this week confirmed that it recently acquired a controlling, 60 percent stake in Diamond Aircraft Industries, Inc. (aka Diamond Canada). As part of the deal announced on December 20, Diamond Canada has acquired all rights to the seven-passenger DA62 twin and four-passenger DA40 single from its Austrian parent company Diamond Aircraft Industries GmbH (Diamond Austria). Production and type-design responsibility for these models will transfer from Austria to Diamond’s London, Ontario site by the end of 2017.

Wanfeng’s investment may ultimately help to rekindle plans for the single-engine D-Jet program, which was put on hold in 2013 due to lack of funds. In a press statement, Diamond commented: “The scope of the investment in the Canadian Diamond companies also includes D-Jet Corp. The future of the D-Jet and/or possible derivative aircraft is subject to ongoing review.”

Diamond Austria will remain independent of Diamond Canada, but will support the new owners with production and development activities. It will retain type design and production responsibility for the DV20 and DA42 models. Existing licensed production arrangements for the Chinese market are not related to the Wanfeng investment. Diamond Austria also will continue to develop the Dart turboprop aerobatic trainer and the DA50 models.

Wanfeng’s investment also does not affect authorized service centers. Existing Diamond authorized distribution partners will continue to provide service to customers. Furthermore, factory direct sales will be handled by the manufacturer of each model.

Peter Maurer will continue as CEO of Diamond Canada. Wanfeng group’s Frank Chen has been appointed chairman. All current models produced by both Diamond Austria and Diamond Canada will continue to be branded as Diamond Aircraft. There will be no changes in the Diamond Austria management team.

“This investment will support expanded production, sales and service activities globally, with a strengthened focus on the U.S. market,” said Diamond Aircraft.​

http://www.ainonline.com/aviation-n...1/chinas-wanfeng-takes-control-diamond-canada

​

Even though unfair regulatory environment is tightening, especially in the US, and blocking China-led acquisitions and mergers, opportunities still arise here and there.

 

[Shotgunner51]

Even though unfair regulatory environment is tightening, especially in the US, and blocking China-led acquisitions and mergers, opportunities still arise here and there.

Yes, if you look at macroscopic financials (massive NIIP + accumulating surpluses), China is under severe pressure to convert low yield reserve assets to FDI, and US banksters for sure knows this, even idiots can read those financial numbers and feel the gravity of current global inter-nation debt situation.

US can't sabotage greenfield FDI in all 193 nations, but they will torpedo both greenfield (check UK nuclear plant) and M&A (Aixtron in Germany) especially when assets are in nations where US can play dirty politics.

 

[TaiShang]

Ruyi plans to buy UK trench coat maker for $120 million
China Daily, December 22, 2016

Shandong Ruyi Group plans to acquire iconic British trench coat maker Aquascutum for about $120 million, sources said, as Chinese companies extend a record overseas dealmaking spree.

The Chinese mainland textile producer, which bought control of French fashion group SMCP earlier this year, plans to buy the Aquascutum business from Hong Kong-listed YGM Trading Ltd and is conducting due diligence, according to the sources.

Ruyi hopes to reach a final agreement in the next few weeks, one the sources said.

Ruyi joins Fosun International Ltd and Qingdao Haier Co in seeking to acquire foreign consumer brands that can be marketed to increasingly affluent Chinese shoppers. Chinese companies have announced $50.2 billion in overseas consumer acquisitions this year, up from $24.3 billion during the same period in 2015.

Shares of YGM Trading, which also distributes the Ashworth line of golf apparel, have risen 46 percent this year, giving the company a market value of $156 million.

YGM Trading said in an Oct 17 exchange filing it had signed a memorandum of understanding to sell its Aquascutum brand business for about $120 million, without naming the buyers.

There's no certainty the deliberations will result in a transaction, the sources said. A representative for YGM Trading said she could not immediately comment. A person who answered the phone at Ruyi's headquarters said nobody was available to answer queries.

Aquascutum was founded in 1851 in London by tailor John Emary, who invented a rain-repellent fabric.

The company's trench coats, developed for use by the British military, were later worn by UK former prime minister Margaret Thatcher and US movie star Humphrey Bogart, according to Aquascutum's website. YGM Trading became the global owner of the brand in 2012.

Ruyi bought control of SMCP, the French fashion group, from private equity firm KKR & Co earlier this year. The Chinese textile producer has also invested in clothing companies including Tokyo-based Renown Inc.

 

[onebyone]

The 5 Biggest Chinese Investments In The U.S. In 2016

It's been a milestone year for Chinese companies investing in the U.S. According to Mergermarket, Chinese companies invested a total of $51.09 billion into the U.S. via 65 deals in 2016. That's a 360% surge from 2015 when Chinese companies invested $11.7 billion. In all, Chinese investments made up 12% of all inbound mergers & acquisitions in the U.S. this year, a big step up from previous years when Chinese investments made up about 2% or so of foreign investments into the country.

The rapid rise in Chinese investments has made some lawmakers nervous. In the past year, 150 Republican and Democrat members of Congress have written letters to the Department of the Treasury, urging stepped up authority for the Committee on Foreign Investment in the United States, or CFIUS. Though Chinese companies are still interested in investing the U.S., growing protectionism in the U.S. under president-elect Trump and more stringent Chinese capital controls could dampen the flood of investment.

As we close out this record-breaking year, here's a look back at the five largest deals by Chinese companies in the U.S. in 2016.

5. Dalian Wanda Acquires Legendary Entertainment For $3.5 Billion

Legendary Entertainment produced blockbuster hits such as "Jurassic World." Anna Faris and Chris Pratt arrive at the Los Angeles premiere of the film. (Matt Sayles/Invision/AP)

Chinese conglomerate Dalian Wanda Group added to its global entertainment empire back in January with its $3.5 billion acquisition of Hollywood production company Legendary Entertainment. The deal gave Wanda the rights to popular films such as The Dark Knight, Inception, Jurassic World and Straight Outta Compton. The studio's first major China-U.S. collaboration, The Great Wall starring Matt Damon, was recently released in China. The film will be released in the U.S. in February.

Legendary was just the latest of a string of entertainment-related acquisitions by Dalian Wanda, which is owned by China's wealthiest man Wang Jianlin. The company bought AMC Entertainment Holdings, the second-largest cinema chain in the U.S., for $2.6 billion back in 2012 and also owns theaters and movie production companies in China. With AMC's pending $1.2 billion acquisition of Carmike Cinemas, Wanda will own the largest theater chain in the world. Wanda also announced a strategic alliance with Sony Pictures in September in which Wanda would market or co-finance films. As part of the deal, Wanda said it would "strive to highlight the China element in the films in which it invests."

Wanda's founder and chairman Wang has said he is still interested in acquiring one of Hollywood's "big six" movie studios as a way to expand China's "soft power."

"I am not sure how many film production companies exist in the world, but only six have global distribution channels. Can movies from China rely on the distribution channels of these six foreign companies to become more international? The answer is no. To increase the global influence of Chinese culture we need to firmly establish our own channels of transmission. We also need to develop a strong, globally recognized brand," he said during a recent meeting in Beijing.

4. Qingdao Haier Co. Spends $5.6 Billion To Buy GE Appliance Business

Haier factory in Qingdao, China. (STR/AFP/GettyImages)

The appliance division of General Electric officially became a part of Haier in June, giving the Chinese appliance manufacturer an opportunity to boost its presence in the U.S. market. Though a behemoth in China, Haier has struggled to gain a foothold in the competitive U.S. consumer market.

Haier had tried to buy GE Appliances once before, in 2008 but couldn't come to an agreement on price. Haier also made an unsuccessful bid for Maytag in 2004 but lost to Whirlpool. The deal with GE this year came through soon after GE walked away from an attempt to sell its appliances business to Electrolux for $3.3 billion amid opposition from U.S. antitrust regulators. For General Electric, shedding the appliance division is an opportunity to focus on more lucrative fields such as jet engines or power systems.

Haier said it would continue to use the GE Appliances brand and that the company would continue to be based in Louisville, Kentucky and operated independently under the direction of the current management team. A board of directors, including representatives from Qinghai Haier and GE Appliances as well as independent directors, would guide strategy and operations.

 

[onebyone]

3. Tianjin Tianhai Buys Ingram Micro for $6.07 Billion

Ingram Micro's office. (Susan Goldman/Bloomberg News)

The deal between Tianjin Tianhai and Irvine, California-based Ingram Micro marked the largest Chinese takeover of a U.S. information technology company.

First announced in February, the deal was completed in December after getting through regulatory hurdles both in the U.S. and China. Ingram Micro and Tianjin Tianjin said it would seek approval by the Committee on Foreign Investment in the United States, or CFIUS, in July after initially declining to submit the deal for review. Foreign buyers can voluntarily submit a deal for review or risk an involuntary probe later. The move was seen as a sign that Chines buyers are realizing the importance of image and of ensuring lawmakers that they are playing by the rules. CFIUS review extended the deadline for the deal by three months.

More recently, the deal was awaiting the green light by China's State Administration of Foreign Exchange. Approval was thrown into question amid recent capital restrictions in China. In efforts to clamp down on capital flight, China's State Council issued restrictions on Chinese companies buying assets outside of their "core" area of business.


Tianjin Tianhai is a part of HNA Group, a Chinese conglomerate with interests in shipping, logistics and tourism. HNA has been one of China's most active outbound acquirers this year. It bought Carlson Hotels, which owns the Radisson and Park Plaza brands, in April and CIT's leasing arm for $4 billion. It also agreed to buy Pactera Technology, an information technology outsourcing firm, from Blackstone Group for $675 million.

2. HNA Tourism Group Buys Stake in Hilton Worldwide for $6.49 Billion

Hilton Worldwide Holdings Inc. signage outside the company's Millenium hotel in New York. (Mark Kauzlarich/Bloomberg)
Chinese conglomerate HNA in October agreed to pay private equity firm Blackstone Group $6.49 billion for a 25% stake in Hilton. The move was part of HNA's efforts to enhance its "global tourism business."

The deal helps both HNA and Hilton grow their businesses in China's fast-growing tourism market both in China and worldwide. China is home to one of the fast-growing hotel markets in the world while outbound tourism is also growing quickly. Some 120 million Chinese tourists traveled outside of China in 2015.

Based in Hainan, HNA started as a regional airline in 1993 and is today one of China's largest tourism companies with nearly 2,000 hotels. In addition to tourism, HNA also has interests in logistics and financial services. The group controls 550 aircraft, 13 airports and about 60 ships.

The transaction is expected to close in early 2017. As part of the deal, HNA will be able to appoint two directors to Hilton's board of directors. Blackstone's stake in Hilton will be reduced to 21% after HNA's acquisition.

1. Anbang Insurance's $6.5 Billion Deal For Strategic Hotels And Resorts

The entrance to the Essex House on Central Park South in New York, one of the 15 hotels sold to Anbang Insurance Group in September. (Daniel Acker/Bloomberg News)

One of China's largest insurance companies, Anbang Insurance Group completed most of its $6.5 billion acquisition of Strategic Hotels & Resorts in September. The transaction included 15 properties, including JW Marriot Essex House in New York and the Four Seasons in Washington. The seller, private equity firm Blackstone Group, removed one property from the deal after the Committee on Foreign Investment in the United States raised security concerns. The Hotel del Coronado, a landmark hotel located near a major naval base in San Diego, was valued at approximately $1 billion, bringing the final price on the deal to about $5.5 billion.

The acquisition of Strategic had been on track to become the second largest U.S. acquisition by a Chinese buyer after Smithfield Foods's $7 billion sale to Shuanghui International in 2013.

Anbang has been busy on the real estate acquisition front. The company first entered the U.S. market in February 2015 with its purchase of the famed Waldorf Astoria hotel in New York for $1.95 billion, the most ever paid for an American hotel. The company is planning to convert most of the 1,400 hotel rooms into condominiums. Later in the year, Anbang made an unexpected $12.9 billion bid for Starwood after Starwood had already agreed to sell to Marriott. Anbang started a bidding war and the price escalated to $14 billion.

Anbang then abruptly walked away from the deal, citing "various market considerations." The sudden change of heart stoked concerns about the seriousness of Chinese buyers as well as about Chinese regulatory restrictions. Chinese news outlets reported that the country's insurance regulator wanted to nix the deal, using a rule that prevents Chinese companies from investing more than 15% of their total assets outside of the country.

Anbang is now reportedly in talks to buy $2.3 billion in Japanese residential property assets from Blackstone and has a deal pending to buy Retirement Concepts in Vancouver, Canada, one of the largest retirement home chains in British Columbia.

http://www.forbes.com/sites/ellensh...-chinese-investments-in-us-2016/#37485fc177d3

 

[Hassan Guy]