China Global M&A Push, 2005 ~ Nowadays

[Shotgunner51]

World’s Largest Mining Investment Fund Is Bargain Hunting Again
Dave Forest
Oilprice.comJanuary 24, 2017

Tenke Fungurume Mining, Congo

China expanded its global reach again this past week. With the first-ever rail shipment of Chinese goods arriving in London, as part of a new Silk Road train route. And news yesterday suggests China is taking big leaps in resource finance as well.

That announcement came from China Molybdenum Company — the world’s largest moly miner. With the company saying it has an unusual new financial partner for its latest mine acquisition.

Chinese private equity.​

That follows China Moly’s purchase of a 56% interest in Tenke last May from Freeport-McMoRan. A deal that initially looked rocky after objections from DRC state mining firm Gecamines — but which has now reportedly been endorsed by the DRC government.

The Chinese miner bringing in BHR is a very interesting move. Representing one of the first forays we’ve seen for China-based private equity into the mining space.

BHR does have a Western flavor to it — having U.S. advisors Thornton Group and Rosemont Seneca (run by the son of departing U.S. Vice-President Joe Biden) as minority partners. And the investment group is getting a lot of support from China Moly, including financial guarantees for BHR’s $1.14 billion purchase price on the 24% Tenke interest.

But this shows private investment appetite for mining is rising in China. An observation supported by recent data from private equity analysts Preqin — who reported that Chinese backers are right now preparing the world’s largest mining private equity fund.

All of which suggests there may be a lot of money coming soon from China for mining deals. Watch for more private equity buys emerging from this part of the world, and for a completion announcement on funds like Power Capital’s.

Here’s to deep pools.

http://finance.yahoo.com/news/world-largest-mining-investment-fund-161000073.html

 

[Shotgunner51]

Yancoal snaps up Rio Tinto's NSW coal mines for $US2.5 billion
January 25 2017

An arm of the Chinese government has snapped up Rio Tinto's coal mines in NSW and in the process has emerged as one of the largest coal miners in Australia.

Ending months of speculation, Rio has finally managed to offload its remaining coal interests in NSW, selling out to the Chinese government-controlled Yancoal Australia, although it is expected to take much of 2017 for the deal to be settled.

Rio chief executive Jean-Sébastien Jacques said the sale "delivers outstanding value for our shareholders". Photo: Bloomberg

With the acquisition, Yancoal will now own some of the largest single coal mines in Australia, with a suite of mines in NSW and Queensland. It is yet to clarify how it will fund the purchase, although a share issue is expected to be launched in the June quarter.

The Chinese-controlled company will more than double in size, producing more than 42 million tonnes of coal in Australia.

The sale of Coal & Allied represents the culmination of an extensive assessment of all strategic options, Rio said.

With the acquisition, Yancoal will now own some of the largest single coal mines in Australia, with a suite of mines in NSW and Queensland. It is yet to clarify how it will fund the purchase, although a share issue is expected to be launched in the June quarter.

The Chinese-controlled company will more than double in size, producing more than 42 million tonnes of coal in Australia.

Yancoal is buying Rio's NSW coal mines. Photo: Peter Rae

Rio chief executive Jean-Sébastien Jacques said the sale "delivers outstanding value for our shareholders".

"We are confident that Coal & Allied will continue to contribute to the NSW economy and the communities of the Hunter Valley under a new owner," he said.

The sale of Rio's Coal & Allied unit represents the culmination of an extensive assessment of all strategic options for these assets, the Anglo-Australian miner said, and it comes after "a comprehensive market testing and price discovery process" along with negotiations with a number of potential buyers.

"Yancoal Australia provided the only offer that represented compelling value for the assets," it said.

With the sale, Rio said it has either announced or completed $US7.7 billion of asset sales since 2013, including the sale of its share of the Clermont coal mine, the Bengalla coal mine and the Mount Pleasant coal project.

The mines being sold to Yancoal produced 25.9 million tonnes of thermal and semi-soft coking coal in 2016 of which Rio's share was 17.1 million tonnes. The net assets subject to this sale agreement had earnings before tax of $US102 million in the 2015, and a gross asset value attributable to them of $US1.895 billion as at June 2016.

Yancoal Australia is 78 per cent owned by Yanzhou Coal Mining Co of Hong Kong, which is in turn controlled by an arm of the Chinese government. Yancoal sells around 25 million tonnes of coal annually produced at its Australian mines.

The deal is subject to state and federal government scrutiny, Rio said.

Following settlement, Yancoal is to a pay royalties of $US2 a tonne as long as the thermal coal price is over $US75 a tonne.

Yancoal's offshore parent said it will pump $US1 billion of additional equity into its Australian arm while also looking for other investors to take up shares in any fund raising.

http://www.smh.com.au/business/mini...ets-to-yancoal-australia-20170124-gty09e.html

 

[ahojunk]

Alibaba's financial arm to acquire MoneyGram
2017-01-27 09:12 Xinhua Editor: Li Yan

Ant Financial, e-commerce giant Alibaba's financial arm, announced late on Thursday that it has reached a deal to acquire U.S. money-transfer company MoneyGram for 880 million U.S. dollars.

"The acquisition of MoneyGram is a significant milestone in our mission to bring inclusive financial services to users around the world," said Eric Jing, chief executive officer of Ant Financial Services Group.

The company owns Alipay, one of China's biggest online payment platforms and controls the company that manages the country's largest money market fund, Yu'ebao.

The transaction will connect MoneyGram's money transfer network of 2.4 billion bank and mobile accounts and 350,000 physical locations with Ant Financial's users, according to the statement.

MoneyGram will remain headquartered in Dallas and continue to operate under its existing brand, it said.

The transaction will help expand Ant Financial's business following its partnering with Paytm in India and Ascend Money in Thailand, it said.

Alex Holmes, CEO of MoneyGram, said Ant Financial is an ideal partner. "We will be able to expand our business, and in doing so, offer people around the world access to a reliable financial connection to loved ones," Holmes said.

The transaction is subject to approval of MoneyGram's stockholders and regulatory approvals. The acquisitions is expected to finish in second half of 2017.

.

 

[ahojunk]

DEALS | Thu Jan 26, 2017 | 11:04am EST | Reuters
Chinese-owned Club Med to open 15 new resorts by 2019

The logo of French holiday group Club Med is seen on its Paris headquarters, France, November 3, 2016. REUTERS/Charles

By Dominique Vidalon | PARIS

Holiday company Club Med, owned by Chinese group Fosun (0656.HK), plans to open 15 new resorts worldwide in the next three years, including one in China and one in Japan in 2017, and to upgrade nine of its existing sites.

In France alone, still Club Med's biggest market, the group plans to open one new mountain village resort each year until 2019, Chief Executive Henri Giscard d'Estaing told a news conference.

"The club has resumed its march forward and is now accelerating," Giscard said, reflecting a new optimism two years after the company was finally bought out.

Fosun Group, China's largest private conglomerate, took control of Club Med in January 2015 after a fierce battle lasting nearly two years with Italian tycoon Andrea Bonomi, the longest takeover fight in French corporate history.

Club Med was seen as overly dependent on Europe, home to 70 percent of its revenue and sluggish economic growth. Fosun offered it a chance to accelerate a strategy focused on moving further upmarket and expanding abroad, notably in the booming Chinese market.

Club Med now operates 68 holiday villages worldwide, with some 77 percent of its resorts labeled premium or luxury compared with 55 percent in 2010, when Fosun bought an initial 7 percent stake in the company.

China is its second largest market after France with 200,000 customers, up from 59,000 in 2010. This compares with 406,000 customers for France, a number broadly unchanged from 2015.

Club Med has five resorts in China, in Yabuli, Guilin, Zhuhai Dong'ao Island, Sanya, and Beidahu, and will open a Joyview branded resort in Anji this year, Giscard said.

Designed to offer Chinese urban consumers the opportunity to enjoy short holiday breaks, Joyview resorts are located close to China's major cities. Anji is relatively close to Shanghai.

Club Med, which is no longer listed on the stock exchange, reported a 1 percent rise in clients worldwide to 1.26 million in 2016.

It also generated a 15 percent rise in Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) despite a 1 percent decline in global revenue to 1.469 billion euros.

The revenue decline reflected a 3 percent drop in revenue from Europe, where political turmoil in Turkey and North Africa hurt business. Revenue however rose 6 percent in Asia and 4 percent in America.


(Reporting by Dominique Vidalon; Editing by Keith Weir)

 

[TaiShang]

Toutiao snaps up video-sharing site Flipagram
China Daily, February 3, 2017

Toutiao, a popular news app, provides valuable and personalized information for users in China. [Photo provided to China Daily]


Chinese online content aggregation app Toutiao announced it has acquired Flipagram, a US-based mobile video sharing and creation company, marking a significant step forward in Toutiao's global growth.

The deal will enhance Flipagram's network and help it distribute videos through Toutiao's content recommendation engine, while Toutiao, which has 175 million monthly active users in China, will acquire a flagship mobile video firm and its operations in the United States.

Flipagram will operate as an independent company and the two sides will further integrate their technology and products. Financial details of the acquisition were not announced.

Launched in 2013, Los Angeles-based video app Flipagram allows its 200 million users to create and share video stories with just their phones. It is fully licensed to allow the use of music in its videos via agreements with top record companies.

Media reports said last year that Flipagram was looking for a buyer. It raised $70 million in a Series B round of funding from Sequoia Capital, Kleiner Perkins and Index Ventures in 2015.

Farhad Mohit, Flipagram's co-founder and CEO, said: "Toutiao's expertise in content recommendations can help take the Flipagram mobile video network to the next level."

Founded in 2012, Toutiao, which means "headlines" in Chinese, is China's largest one-stop entertainment platform.

 

[TaiShang]

China's ODI comes close to US$200b in 2016
China Daily, February 3, 2017

China's overseas direct investment is estimated to soar 40 percent to a record $189 billion in 2016 from the previous year, according to a study released by the US consultancy Rhodium Group and Berlin-based Mercatur Institute for China Studies.

Europe emerged as a key investment destination, as the country's investments in the EU jumped 77 percent to over 35 billion euros, with Germany grabbing 11 billion or 31 percent of the total, according to the report.

Chinese investors have shown particular interests in advanced manufacturing and service sectors, it noted, citing last year's mega deals including the acquisition of KUKA, Skyscanner and the cinema chain Odeon.

Such trends coincided with China's latest move to warn against state-owned enterprises' outbound investments in mining or heavily polluting industries.

Although official full-year ODI data is not yet available, Rhodium Group expects the increase will cement "China's role as one of the top direct investor nations globally".

However, the report also noted China is implementing more "stringent reviews" for certain outbound investment deals with the goal of cracking down on illegitimate transactions, which are to blame for putting increasing downward pressure on the renminbi.

The country's top state-owned assets regulator plans to further enhance the accountability and risk control of overseas acquisitions by the SOEs, according to documents released early last month.

Unreasonable cases may still exist as the outbound investments soar, and such risks, once unguarded, may backfire on both sides.

Therefore it's necessary to appeal for prudent investments, said Xu Shaoshi, head of the National Development and Reform Commission, at a press conference in January, adding that "the overall support for Chinese firms going global hasn't and will not change."

 

[艹艹艹]

http://techcircle.vccircle.com/2017...lyhunt-stake-to-chinas-bytedance-for-19-2-mn/
Franklin PE arm sells Dailyhunt stake to China’s Bytedance for $19.2 mn（“Bytedance”今日头条的母公司）

February 1, 2017 | Disha Sharma

Franklin Templeton Private Equity Strategy has exited vernacular news aggregator Dailyhunt, selling its stake to existing investor Bytedance of China, a financial daily reported on Wednesday.

Franklin Templeton PE sold its stake in Ver Se’ Innovation Pvt. Ltd, which runs Dailyhunt, for around Rs 130 crore ($19.2 million), a report in The Economic Times said.

Franklin had invested $10.34 million in the company in September 2011, and an undisclosed amount, along with other investors, in October last year, data from VCCEdge, the data research arm of News Corp VCCircle, show.

The report also mentioned, citing filings with the Registrar of Corporate Affairs, that the transaction valued the company at Rs 2,100 crore ($310 million), a premium over the Rs 1,700-1,800 crore ($251-266 million) it was valued at in the previous funding round.

Emails sent to Dailyhunt and Franklin Templeton PE Strategy didn’t elicit a response at the time of writing this report.

Dailyhunt had raised Rs 168 crore ($25 million) in Series D funding from Chinese content provider ByteDance in October last year. Arun Sarin, former CEO of Vodafone, and existing investors—Matrix Partners, Sequoia Capital India, Omidyar Network, Falcon Edge and Franklin Templeton PE—also participated in the round.

It had raised Rs 250 crore ($36 million) in Series C funding in February, led by New York-based hedge fund Falcon Edge Capital. In September 2014, it raised Rs 110 crore in Series B funding from Sequoia Capital, Omidyar Network and Matrix India Partners.

Dailyhunt was launched as Newshunt by former Nokia executives Umesh Kulkarni and Chandrashekhar Sohoni in 2009 and sold to Ver Se’ Innovation in 2012. It was rebranded as Dailyhunt in August 2015.

Dailyhunt forayed into the e-books space in 2014, and it is currently working with around 150 regional and global language book publishers. In 2015, Ver Se’ acquired Delhi-based Rocket Science Innovations Pvt. Ltd, which runs e-commerce price comparison and recommendation platform BuyT.in, for an undisclosed amount.

Last year, Dailyhunt invested $2.2 million (Rs 15 crore) in OneIndia, a local language content provider.

Beijing-based ByteDance operates content recommendation platforms—Toutiao in China and TopBuzz in the US and Brazil. It is backed by DST Global and Chinese firm Sina Weibo.

Deals in the space

Inshorts (earlier called News In Shorts), which aggregates news, videos, infographics and blogs, had raised Rs 25 crore ($4 million) in Series A funding from Tiger Global and Japan’s Rebright Partners in 2015. The company has raised a total of $24 million so far.

In January 2016, Times Internet Ltd, the digital arm of Bennett, Coleman & Co. Ltd (BCCL), acquired Gurgaon-based Viral Shots for an undisclosed amount.

Civilsdaily, an online startup that aggregates news relevant for civil services aspirants, had raised an undisclosed amount in seed funding from Malgharia Advisors’ co-founder Manoj Kumar and other individuals in March 2016.

 

[ahojunk]

DEALS | Fri Feb 3, 2017 | 11:45am EST
EU set to approve ChemChina's $43 bln bid for Syngenta: sources

By Foo Yun Chee | BRUSSELS

ChemChina [CNNCC.UL] is set to secure conditional EU antitrust approval for its $43 billion bid for Swiss pesticides and seeds group Syngenta (SYNN.S), the largest foreign acquisition by a Chinese company, two people familiar with the matter said on Thursday.

The deal is important for China, the world's largest agricultural market, which is seeking to secure the food supply for its huge population. Syngenta's portfolio of top-tier chemicals and patent-protected seeds would boost its potential output.

The Chinese state-owned company has agreed to minor concessions to allay the European Commission's concerns over its takeover of the world's largest pesticides maker. Regulators had been worried that the deal may lead to higher prices and fewer choices for farmers.

The headquarters of China National Chemical Corporation in Beijing, July 20, 2009.
REUTERS/Stringer/File Photo

ChemChina will divest a couple of national product registrations, including existing products and a few in the pipeline, in more than a dozen EU countries, one of the people said.

The products are generally from ChemChina unit and Israeli crop protection company Adama while a few are from Syngenta, the person said. No plants, facilities or personnel are involved. Adama is the largest supplier of generic crop protection products in Europe.

Commission spokesman Ricardo Cardoso declined to comment. It was not immediately possible to reach ChemChina for a comment outside regular office hours. Syngenta said it has not been notified of any decision by the Commission.

The Commission may announce its approval next month, ahead of its scheduled April 12 deadline, the source said.

Syngenta shares were 0.45 percent higher at 426.4 Swiss francs in late trade. The deal has already been approved by a U.S. national security panel.


(Reporting by Foo Yun Chee, additional reporting by Adam Jourdan in Shanghai and Oliver Hirt in Zurich)

 

[Shotgunner51]

Monday 30 January 2017 8:15am

Enter The Dragon: Why China is snapping up British assets
Shruti Tripathi Chopra

Chinese firms bought up British assets worth $11.3bn (£9bn) last year (Source: Getty) ​

What do Heathrow, Thames Water, black cabs, Harvey Nichols and Rio Tinto have in common? They’re all part-owned by Chinese companies.

“Britain holds a number of attractions for Chinese investors,” says Simon Bevan, head of the China Britain services group at Grant Thornton UK. “As a country, our language, business culture, rule of law and fiscal regime are viewed positively, and it is seen as a key market in which Chinese companies can achieve growth.”

Chinese firms bought up British assets worth $11.3bn (£9bn) last year and have spent nearly $50bn in the last decade on acquisitions into the country.

Bevan adds: “UK real estate and infrastructure assets have attracted considerable investment and are generating huge interest from both state and private Chinese investors.

“Consumer brands, such as retailers and food and beverage, technology, media and telecommunications, and fintech are other areas which are very much on the radar for China, with the current weakness in sterling continuing to make these assets even more affordable and attractive to investors.”

Prime Minister Theresa May’s relationship with China got off to a slightly rocky start last year when she decided to review the controversial £18bn Hinkley Point C nuclear project due to security concerns over Chinese involvement.

However, the government eventually approved the project in September after revising some conditions; it also promised a new national interest test for takeovers originating from overseas.

Come November, and May was calling for a new “golden era” in Britain’s relations with China. She is due to visit the Asian powerhouse soon.

The wheels for more trading opportunities between the two countries are already in motion – literally. Earlier this month, the first freight train from China travelled nearly 7,500 miles over 18 days to arrive in Britain with containers stuffed with goods.

“The fact remains the UK needs inward investment, particularly since the vote to leave the EU, and the new government’s plans to boost infrastructure and transport links, particularly in the north of England, won’t be achieved by taxpayer money alone,” says Michael Hewson, chief market analyst at CMC Markets.

“The recent fall in the pound has made UK assets cheaper and more attractive and as long as national security interests are upheld the UK government will probably continue to encourage the private investment of the type the Chinese offer,” he added.

And what of the Chinese? China’s ambitions for big ticket acquisitions may take a knock this year. In a recent report, S&P suggested “greater government scrutiny” and the drop in renminbi last year is likely hit Chinese spending on M&A in 2017.

“Over the past several months, the Chinese government has implemented steps to try to control depreciation of the Chinese renminbi, and maintain control over the leverage of state-owned enterprises (SOEs).

“Given that outbound acquisitions have principally been credit-fuelled, this will have the secondary effect of dampening the appetite for SOEs to make big-ticket acquisitions, and make overseas acquisitions more difficult to complete,” S&P said.

Let’s hope the Chinese New Year, celebrated over the weekend, will bring luck for the Chinese M&A sector.

Some deals are still getting done. Last week, Chinese stadium giant Lander announced it had bought a stake in Southampton football club for an undisclosed sum.

Here are British assets you never knew were Chinese-owned

Rio Tinto
One of the world’s biggest aluminium producers, Aluminim Corp of China or Chinalco, snapped up a 12 per cent stake in London-listed Rio Tinto in a $14.2bn deal in 2008. It is the biggest acquisition China has made into the UK over the last decade.

Skyscanner
The travel firm was sold to Ctrip, China’s largest online travel business, in November in a deal valuing the UK site at around $1.74bn. Gareth Williams, co-founder and chief executive of Skyscanner, said: “Ctrip is the clear market leader in China and a company we can learn a huge amount from.”

Pizza Express
The British restaurant chain was gobbled up by Beijing-based Hony Capital in a £900m deal in 2014. The Chinese firm struck the deal with the aim of ramping up the brand’s presence in the Asian markets.

House of Fraser
In a £480m deal, UK department store chain House of Fraser sold a majority stake in its business to Chinese conglomerate Sanpower. “This acquisition is a landmark transaction for a Chinese listed company,” said Yuan Yafei, chairman of Sanpower Group.

Hamleys
Britain’s most iconic toy store Hamleys got a new owner in 2015 when Chinese footwear seller C Banner International bid for the then 255-year-old brand. The £100m deal was made to help C Banner diversify into other businesses.

Thomas Cook
To crack Europe’s travel sector, Chinese investor Fosun bought a five per cent stake in Thomas Cook for £92m in 2015.

National Grid
In December, National Grid struck a deal to sell a 61 per cent stake in its UK gas distribution business to a consortium backed by China Investment Corporation, and Aussie financiers Macquarie.

Despite some macroeconomic headwinds, analysts and sinophiles expect more mega-deals to come.


Read the original article at http://www.cityam.com/258027/enter-dragon-why-china-snapping-up-british-assets-

 

[Shotgunner51]

January 25, 2017 4:00 pm JST

China power giant gobbling up foreign players
State Grid Corp. of China's investment abroad may hit $50bn by 2020
SHUNSUKE TABETA, Nikkei staff writer

A State Grid Corp. of China power grid in Jiangsu Province © AP ​

BEIJING -- State Grid Corp. of China (SGCC), one of the companies spearheading Beijing's 21st-century Silk Road project, plans to boost its overseas investment to up to $50 billion by 2020.

Since first venturing abroad in 2009, the state-run power transmitter and distributor has increased its cumulative overseas investment to more than $10 billion, including the purchase of stakes in power grid operators in Brazil and Greece in 2016. A big factor driving the overseas push is the attractive foreign earnings-to-assets ratios, which are three to five times higher than those in China.

​

"Greece -- where Asia, Europe and Africa converge -- is strategically important and we will accelerate our foray into Europe," Kou Wei, president of SGCC, said during a ceremony late last year to announce the company's 320 million euro ($343 million) purchase of a 24% equity stake in an electricity transmission company owned by Public Power Corp., Greece's largest power company.

Powering corporate China

SGCC is keen to develop electric power infrastructure across Asia and through Europe under Chinese President Xi Jinping's "Belt and Road Initiative" to create a modern-day Silk Road. The company's mission is to support the growth of Chinese companies in Europe and Africa by supplying them electricity.

In 2016, SGCC bought a 14% stake in Eandis, a leading Belgian power grid operator. The move followed the 2012 purchase of a 25% stake in Portuguese state power company Redes Energeticas Nacionais and the 2014 acquisition of a 35% interest in an Italian power company.

With European companies starved for funds due to the slumping regional economy, SGCC has been able to steadily strengthen its foothold there by helping them.

For its Asian operations, SGCC agreed with Russian power grid company Rosseti in June 2016 to set up a joint venture in Beijing. The Chinese company plans to kick off work this year under the partnership, which will see SGCC help improve power grids in Russia with its cutting-edge technology.

In 2016, the two companies agreed with SoftBank Group of Japan and Korea Electric Power of South Korea to conduct joint studies on establishing an international grid in Asia. The consortium is already conducting research on building an undersea cable system in Northeast Asia and will seek to find ways to more stably supply energy from such sources as solar and wind power.

SGCC's ambitions do not end with the Silk Road. On Tuesday, the company announced it was boosting its stake in major Brazilian grid company CPFL Energia to 54.6%, adding to the 23.6% interest it bought for some 5.8 billion real ($1.82 billion) in September. CPFL controls 14% of the domestic market, operating grids in Sao Paulo and other states.

With the stake increase and purchase of shares in CPFL's listed subsidiary, SGCC's total spending on the Brazilian company will far surpass the $1.82 billion it initially pumped into the business.

That investment comes in addition to SGCC's acquisition of about 10 grid operators in Brazil between 2010 and 2012.

Possible pushback

SGCC's first overseas push started with the purchase of a 40% stake in a grid operator in the Philippines. It subsequently began moving into Brazil and Europe, as well as purchasing assets in Australia and investing in a grid operator there.

Within just six years of venturing abroad, SGCC had already posted impressive overseas figures: total investment of over $10 billion and more than $40 billion in assets.

The company is stepping on the gas not only because, as one of China's largest state-owned companies, it is acting in accordance with government policy; it is also eager to reap the benefits of an overseas earnings-to-assets ratio that is three to five times higher than in China.

SGCC chalked up sales of 2.07 trillion yuan ($302 billion) and a pretax profit of 86.5 billion yuan in 2015. Although it has yet to release its results for 2016, they are expected to be even better.

The company's cumulative overseas investment is projected to reach between $30 billion and $50 billion by 2020, as it has no plans to end its investment blitz.

But mounting international concern about the growing presence of Chinese companies could weigh on SGCC's plans. In 2016, for example, Australia rejected the company's plan to acquire a local electric power company, citing national security reasons.

The direction of Chinese foreign policy will therefore likely influence SGCC's overseas investment.


http://asia.nikkei.com/Business/Companies/China-power-giant-gobbling-up-foreign-players?page=1

 

[ahojunk]

Outbound investment targeting know-how
2017-02-02 09:41 China Daily Editor: Wang Fan

Chinese companies have shifted the focus of their overseas acquisitions away from natural resources toward innovative technology and robotics, according to a report from a London-based law firm.

The annual M&A Trends report by the Clifford Chance firm found German industrials were a major target for acquisition in 2016.

The report noted Chinese private and State-owned enterprises were increasingly interested in technology companies to gain commercial and technical know-how.

Neeraj Budhwani, a Clifford Chance partner in Hong Kong, said: "China's appetite for offshore assets remains voracious, but we're seeing a shift of focus. ... Technology companies are actively seeking out opportunities in the fintech sector, with a view to bringing more innovative technology back to the country."

But the report warned of growing concerns in Germany that the acquisitions will affect Germany's industrial sector, and about the security of industrial and corporate data.

Meanwhile, the report found Chinese outbound mergers and acquisitions rose 114 percent globally in 2016 in comparison with the previous year.

Chinese bidders spent $208.6 billion last year. The report noted Chinese investment into Europe was up 201 percent, and in North America, it rose by 412 percent.

Terence Foo, an M&A partner based in Beijing, added: "Despite the introduction of restrictions on capital outflows in China, we are helping Chinese buyers explore more innovative funding structures."

.

 

[Shotgunner51]

China decides against taking stake in Areva - source
Tue Jan 31, 2017 | 3:54am EST

• China National Nuclear Corporation (CNNC) has decided against taking a stake in the capital increase and restructuring of French nuclear group Areva, a source close to the discussions said on Tuesday.

• Earlier this month, France said it would buy out minority shareholders in Areva and delist the troubled nuclear group, as talks with potential investors in a new nuclear fuel company being spun out of Areva neared a conclusion. EDF and Areva needed to bring in foreign investors in order to secure the approval of the European Commission under its state aid regulations.

• The state, which owns 87 percent of Areva, said it would offer 4.5 euros per Areva SA share to minority investors which include Kuwait's investment fund, French utility EDF and French energy group Total.

• Japan's Mitsubishi Heavy Industries and Japan Nuclear Fuel (JNFL) have also been looking into taking a stake in Areva.

Read the article at http://www.reuters.com/article/uk-areva-china-idUKKBN15F0O8

 

[Shotgunner51]

Just as I have expected earlier, CNNC is not likely to go for it.

 

[TaiShang]

Osram gets US government approval for lamps unit sale to Chinese buyers
Source: Reuters Published: 2017/2/12

German lighting group Osram has received approval from a US agency for the 400 million euro ($425.52 million) sale of its LEDvance lamps unit to a consortium of Chinese bidders, a spokesman said, bringing the deal closer to completion.

The Committee on Foreign Investment in the United States (CFIUS), a government panel that scrutinizes transactions over possible security concerns, gave its backing for the deal late on Friday, the spokesman said on Saturday.

US approval was needed as parts of the business of LEDvance, Osram's largest unit, are based in the US, a company spokesman said.

The approval from CFIUS comes days after the US agency told German chipmaker Infineon Technologies and US LED lighting maker Cree Inc that Cree's $850 million sale of its Wolfspeed Power unit to Infineon might not go ahead because of security concerns.

Osram agreed last July to sell the renamed LEDvance unit, with 2 billion euros in sales and about 9,000 staff, to IDG Capital Partners, Chinese lighting company MLS Co and financial investor Yiwu State-Owned Assets Operation Center.

The company, listed on Germany's mid-cap index MDAX, is still awaiting approval from Chinese authorities.

 

[TaiShang]

Oil firm mulls stake buy in Noble
China Daily, February 15, 2017

Sinochem Group is in early talks to become a strategic investor in Noble Group Ltd, providing the embattled Asia-based commodities trading house with an equity injection, according to sources familiar with the talks.

Noble is discussing a possible strategic investment, according to a statement on Tuesday that didn't refer to Sinochem.

"No binding arrangements have as yet been entered into with respect to this possible transaction and, accordingly, there can be no assurance that this transaction will be concluded," it said.

The conversations between the State-owned oil and chemicals group and the Hong Kong-based trading house are still at an early stage, the sources said.

Sinochem is understood to be interested in the international energy trading business of Noble, which includes oil, coal and natural gas.

Noble Chairman Richard Elman said last year that the company was looking for a strategic investor after it raised $500 million in fresh equity in June.

"A strategic partner is still very possible," said Elman, who is due to stand down later this year. "But it has to be at the right time and the right candidate."

Noble feels it's now in a stronger position to negotiate a deal for a strategic investor, with its equity price stabilizing and bond prices rising strongly, according to one source.

The yield of Noble's bond maturing in 2020 fell last week below the key 10 percent level for the first time in more than a year, compared with an all-time high of more than 35 percent in January 2016.

Sinochem didn't reply to phone calls and emails.

Noble has been fighting to prop up its finances after a torrid 2015 and 2016 during which its share price collapsed.