j20blackdragon
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Kuka shares jump on the news. This is wonderful.
China Global M&A Push, 2005 ~ Nowadays
- Thread starter cirr
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TaiShang
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Kuka shares jump on the news. This is wonderful.
Looks like Midea gradually increased its ownership and this latest bid will ensure that Midea had the majority shares. From there, it can proceed to own the entire company.
TaiShang
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China on path to top world's cross-border acquisition list
Xinhua, June 4, 2016
China's pursuit of acquisitions around the world has been a big trend for the global market and it is now standing at a whole new height, a recent report says.
Chinese firms have struck 143.3 billion U.S. dollars in overseas deals this year, according to a report published by Dealogic, a financial information provider.
The number is even higher than China's 2015 total -- 106.8 billion dollars. At this rate, China will become the world's largest cross-border acquirer when the year of 2016 runs its course, the report predicted.
The United States has topped the ranking in cross-border acquisition every year since 2007.
The largest deal bid by a Chinese company so far is China National Chemical Corp's 43 billion cash offer for Syngenta, a Swiss seed company.
Xinhua, June 4, 2016
China's pursuit of acquisitions around the world has been a big trend for the global market and it is now standing at a whole new height, a recent report says.
Chinese firms have struck 143.3 billion U.S. dollars in overseas deals this year, according to a report published by Dealogic, a financial information provider.
The number is even higher than China's 2015 total -- 106.8 billion dollars. At this rate, China will become the world's largest cross-border acquirer when the year of 2016 runs its course, the report predicted.
The United States has topped the ranking in cross-border acquisition every year since 2007.
The largest deal bid by a Chinese company so far is China National Chemical Corp's 43 billion cash offer for Syngenta, a Swiss seed company.
TaiShang
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China's Haier goes to Russia with big plan
China Daily, June 6, 2016
A display of electronic products from China's leading home appliance maker Haier is showcased during a Consumer Electronics Show in Las Vegas, U.S. on Jan. 6, 2016. [Photo/Xinhua]
Haier Group, China's biggest maker of household appliances, has opened a new refrigerator factory in Russia in response to increasing demand from the European market. The new plant is the first joint Sino-Russian business project in a non-energy field.
The new site, spanning 24,500 square meters, is located in Kamsky Industrial Park, Naberezhnye Chelny, an important industrial city in the Russian province of Tatarstan.
It will entail up to $55 million in investment, of which $39 million have been invested already to set up the plant. The rest will be invested this month to buy components and towards production.
The factory is a crucial step for Haier to localize its Russia operations. Haier has also started establishing an R&D center and a TV assembly unit in Russia.
Annual output of the Tatarstan plant will reach 500,000 refrigerators in 2020. Production capacity in the first stage will be 250,000 units, which will swell to 500,000 units by the end of the second and final stage. The target markets include Russia, the Commonwealth of Independent States, and some parts of Europe.
By 2017, Haier plans to employ 500 professionals at this factory, and another 1,200 jobs will be created by outsourcing business. At present, there are already 248 staff in Naberezhnye Chelny.
Liang Haishan, the rotating president of Haier Group, said, "Innovation and cutting-edge technologies are the genes of Haier's global strategy. Tatarstan is one of the most prospective Russian regions in terms of economic development, technologies, and innovations."
He said Tatarstan has a supportive investment environment, highly qualified administrators, fully developed industrial clusters, and good prospects for logistics development. The future development of the plant augurs well for the company, he said.
Rustam Minnihanov, president of the Tatarstan Republic, said, "We are very proud that we managed to create all the necessary conditions in the region to attract such hi-tech companies as Haier."
Minnihanov said Haier's factory signals a good beginning towards mutual benefits. As Chinese investors come into the region, Russian enterprises, encouraged by the Russian government, are expanding in China.
Founded in 1984, the Qingdao-headquartered Haier Group is one of the world's leading home appliances manufacturer. It had a 9.8 percent share in global market in 2015, London-based market-research firm Euromonitor International data showed.
In January, the company agreed to buy General Electric's home appliances business for $5.4 billion in cash.
"Haier's strategy is to localize its production in Russia as fast as possible. Over the next two to three years, up to 70 percent of production in Russia is planned to be localized," said Mikhail Babich, Russian presidential plenipotentiary in the Volga Federal District.
In addition to financial investment, Haier is introducing a unique production model and innovative technology to Russia.
It implements special flaw-minimizing technologies at all production stages from manufacturing to assembly and packaging. It has built two laboratories in Naberezhye Chelny, one to check the quality of the products and the other to develop innovative technologies.
Haier has always made efforts to implement "One Belt and One Road" initiative and establish manufacturing bases in Russia. It began to enter the Russian market in 2008 and carried out deep research in the local market, the company said. It launched large-capacity and energy-efficient refrigerators, with a height of 1.9 to 2.0 meters, to meet specific needs and eating habits of Russian consumers.
Haier's 2015 revenue in Russia was ten times that of the 2010 figure. Turnover of home appliances dropped by 15 percent last year, while Haier's turnover increased by 78 percent.
In 2015, the specialists from Naberezhnye Chelny had undergone training at Haier factories in Shandong province of China and have since returned to their home base to put their knowledge to practice.
Yannick Fierling, chief executive officer for Europe operations of Haier, said the new factory would help the company to improve productivity and be more proactive towards the European market. The key to successful globalization is successful localization and getting closer to target markets and end-users, he said.
Zhou Nan, deputy secretary general in the home appliances branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said: "The time for Chinese home appliances (to shine in Russia) is coming. On one hand, the appliance makers need to improve their global layouts; on the other, they need to speed up the pace of going abroad by virtue of the Belt and Road Initiative."
China Daily, June 6, 2016
A display of electronic products from China's leading home appliance maker Haier is showcased during a Consumer Electronics Show in Las Vegas, U.S. on Jan. 6, 2016. [Photo/Xinhua]
Haier Group, China's biggest maker of household appliances, has opened a new refrigerator factory in Russia in response to increasing demand from the European market. The new plant is the first joint Sino-Russian business project in a non-energy field.
The new site, spanning 24,500 square meters, is located in Kamsky Industrial Park, Naberezhnye Chelny, an important industrial city in the Russian province of Tatarstan.
It will entail up to $55 million in investment, of which $39 million have been invested already to set up the plant. The rest will be invested this month to buy components and towards production.
The factory is a crucial step for Haier to localize its Russia operations. Haier has also started establishing an R&D center and a TV assembly unit in Russia.
Annual output of the Tatarstan plant will reach 500,000 refrigerators in 2020. Production capacity in the first stage will be 250,000 units, which will swell to 500,000 units by the end of the second and final stage. The target markets include Russia, the Commonwealth of Independent States, and some parts of Europe.
By 2017, Haier plans to employ 500 professionals at this factory, and another 1,200 jobs will be created by outsourcing business. At present, there are already 248 staff in Naberezhnye Chelny.
Liang Haishan, the rotating president of Haier Group, said, "Innovation and cutting-edge technologies are the genes of Haier's global strategy. Tatarstan is one of the most prospective Russian regions in terms of economic development, technologies, and innovations."
He said Tatarstan has a supportive investment environment, highly qualified administrators, fully developed industrial clusters, and good prospects for logistics development. The future development of the plant augurs well for the company, he said.
Rustam Minnihanov, president of the Tatarstan Republic, said, "We are very proud that we managed to create all the necessary conditions in the region to attract such hi-tech companies as Haier."
Minnihanov said Haier's factory signals a good beginning towards mutual benefits. As Chinese investors come into the region, Russian enterprises, encouraged by the Russian government, are expanding in China.
Founded in 1984, the Qingdao-headquartered Haier Group is one of the world's leading home appliances manufacturer. It had a 9.8 percent share in global market in 2015, London-based market-research firm Euromonitor International data showed.
In January, the company agreed to buy General Electric's home appliances business for $5.4 billion in cash.
"Haier's strategy is to localize its production in Russia as fast as possible. Over the next two to three years, up to 70 percent of production in Russia is planned to be localized," said Mikhail Babich, Russian presidential plenipotentiary in the Volga Federal District.
In addition to financial investment, Haier is introducing a unique production model and innovative technology to Russia.
It implements special flaw-minimizing technologies at all production stages from manufacturing to assembly and packaging. It has built two laboratories in Naberezhye Chelny, one to check the quality of the products and the other to develop innovative technologies.
Haier has always made efforts to implement "One Belt and One Road" initiative and establish manufacturing bases in Russia. It began to enter the Russian market in 2008 and carried out deep research in the local market, the company said. It launched large-capacity and energy-efficient refrigerators, with a height of 1.9 to 2.0 meters, to meet specific needs and eating habits of Russian consumers.
Haier's 2015 revenue in Russia was ten times that of the 2010 figure. Turnover of home appliances dropped by 15 percent last year, while Haier's turnover increased by 78 percent.
In 2015, the specialists from Naberezhnye Chelny had undergone training at Haier factories in Shandong province of China and have since returned to their home base to put their knowledge to practice.
Yannick Fierling, chief executive officer for Europe operations of Haier, said the new factory would help the company to improve productivity and be more proactive towards the European market. The key to successful globalization is successful localization and getting closer to target markets and end-users, he said.
Zhou Nan, deputy secretary general in the home appliances branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said: "The time for Chinese home appliances (to shine in Russia) is coming. On one hand, the appliance makers need to improve their global layouts; on the other, they need to speed up the pace of going abroad by virtue of the Belt and Road Initiative."
cirr
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SPOKESWOMAN: Acquisition of GE Appliances by Haier Group of China expected to take place June 6
Posted:Thursday, June 2, 2016 1:23 PM EDT
Updated:Thursday, June 2, 2016 1:23 PM EDT
LOUISVILLE, Ky. (WDRB) -- We're getting new information on when the acquisition of GE Appliances might take place.
A spokesperson for GE Appliances says the sale to the Haier Group of China could close in less than a week.
"GE Appliances leadership has communicated with employees that we anticipate the acquisition of GE Appliances by Haier to be finalized sometime on June 6," said spokeswoman Kim Freeman in a written statement. "Once the deal is complete, a press release will be issued."
Haier, which has little presence in the United States, has said GE's appliance division will continue to be based in Louisville following the $5.4 billion purchase and led by CEO Chip Blankenship and the current management team.
That differs from the now-defunct plan to sell the appliance division to Sweden-based Electrolux, which has an extensive U.S. footprint and would have absorbed GE Appliances into its Charlotte-based U.S. operations.
Posted:Thursday, June 2, 2016 1:23 PM EDT
Updated:Thursday, June 2, 2016 1:23 PM EDT
LOUISVILLE, Ky. (WDRB) -- We're getting new information on when the acquisition of GE Appliances might take place.
A spokesperson for GE Appliances says the sale to the Haier Group of China could close in less than a week.
"GE Appliances leadership has communicated with employees that we anticipate the acquisition of GE Appliances by Haier to be finalized sometime on June 6," said spokeswoman Kim Freeman in a written statement. "Once the deal is complete, a press release will be issued."
Haier, which has little presence in the United States, has said GE's appliance division will continue to be based in Louisville following the $5.4 billion purchase and led by CEO Chip Blankenship and the current management team.
That differs from the now-defunct plan to sell the appliance division to Sweden-based Electrolux, which has an extensive U.S. footprint and would have absorbed GE Appliances into its Charlotte-based U.S. operations.
TaiShang
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Kuka nears takeover deal with Midea
Shanghai Daily, June 27, 2016
A man inspects a multifunctional robot designed by Germany-based KUKA Robotics company is displayed during the 16th China International Industry Fair in Shanghai, Nov 4, 2014. [Photo/Xinhua]
German robotics maker Kuka is on the brink of agreeing to an investor agreement with Chinese bidder Midea that includes a long-term commitment to existing headquarters, factories and jobs, a source close to the negotiations said.
Kuka needs to decide in the coming week whether it wants to recommend the acceptance of Midea’s 4.5 billion euro (US$4.99 billion) bid, the biggest German industrial technology company to be targeted by a Chinese buyer in a wave of recent deals.
The source said there had been a breakthrough in talks between Kuka and Midea, with the results presented to a meeting of the supervisory board on Saturday.
"Now the details just need to be finalized so that the agreement can be signed in the coming days," the source said.
The agreement to maintain the current headquarters and keep factories and employees should run until 2023, the source added.
The Frankfurter Allgemeine Sonntagszeitung reported that Midea had offered Kuka guarantees including the independence of the company’s management and its listing in Frankfurt.
News of Midea’s bid for Kuka last month caused a furor among German politicians, though Midea has since said it would allow Kuka to operate independently and help it expand in China.
On a visit to Beijing this month, Chancellor Angela Merkel signaled that she would not try to prevent a takeover but also left the door open to German firms making a counter-offer.
However, no potential German or European rival bidder has emerged at this stage.
Shanghai Daily, June 27, 2016
A man inspects a multifunctional robot designed by Germany-based KUKA Robotics company is displayed during the 16th China International Industry Fair in Shanghai, Nov 4, 2014. [Photo/Xinhua]
German robotics maker Kuka is on the brink of agreeing to an investor agreement with Chinese bidder Midea that includes a long-term commitment to existing headquarters, factories and jobs, a source close to the negotiations said.
Kuka needs to decide in the coming week whether it wants to recommend the acceptance of Midea’s 4.5 billion euro (US$4.99 billion) bid, the biggest German industrial technology company to be targeted by a Chinese buyer in a wave of recent deals.
The source said there had been a breakthrough in talks between Kuka and Midea, with the results presented to a meeting of the supervisory board on Saturday.
"Now the details just need to be finalized so that the agreement can be signed in the coming days," the source said.
The agreement to maintain the current headquarters and keep factories and employees should run until 2023, the source added.
The Frankfurter Allgemeine Sonntagszeitung reported that Midea had offered Kuka guarantees including the independence of the company’s management and its listing in Frankfurt.
News of Midea’s bid for Kuka last month caused a furor among German politicians, though Midea has since said it would allow Kuka to operate independently and help it expand in China.
On a visit to Beijing this month, Chancellor Angela Merkel signaled that she would not try to prevent a takeover but also left the door open to German firms making a counter-offer.
However, no potential German or European rival bidder has emerged at this stage.
empirefighter
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Kuka is behind the ABB and other two Japanese robot companies, if Chinese company can cooperate with Kuka, it is a big chance to Kuka, Kuka can change its position in the world biggest robotic market and surpass other three opponents in the coming years. It is win win thing.
TaiShang
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Wanda buys Europe's largest movie theater operator
Xinhua, July 13, 2016
Chinese conglomerate Dalian Wanda Group took another step toward becoming a global movie theater operator by buying its largest European counterpart, the company announced Tuesday.
Wanda-owned AMC Entertainment Holdings, the second largest movie theater chain in North America, will buy the London-based Odeon & UCI Cinema Group with 242 theaters and 2,236 screens in Europe in a deal valued at about 920 million pounds (US$1.2 billion).
The deal would have cost Wanda much more before Britain voted to leave the European Union, sending the pound crashing to a 31-year low.
Wanda said that the transaction will make it the biggest movie theater operator in the world with a leading presence in the world's three largest movie markets. The Chinese company is aiming for about 20 percent of global box office by 2020.
"While we acknowledge that there are some uncertainties related to Brexit, we are encouraged that current currency rates are highly favorable to AMC with the pound falling to a three-decade low versus the dollar," AMC Chief Executive Adam Aron said in a statement.
The company's management are upbeat about the outlook of Odeon & UCI and are confident of a remarkable rise in revenue and profits, the statement added.
***
@ahojunk
I always believe Europe is a better M&A destination than the US because of less politicized intervention by the governments.
Xinhua, July 13, 2016
Chinese conglomerate Dalian Wanda Group took another step toward becoming a global movie theater operator by buying its largest European counterpart, the company announced Tuesday.
Wanda-owned AMC Entertainment Holdings, the second largest movie theater chain in North America, will buy the London-based Odeon & UCI Cinema Group with 242 theaters and 2,236 screens in Europe in a deal valued at about 920 million pounds (US$1.2 billion).
The deal would have cost Wanda much more before Britain voted to leave the European Union, sending the pound crashing to a 31-year low.
Wanda said that the transaction will make it the biggest movie theater operator in the world with a leading presence in the world's three largest movie markets. The Chinese company is aiming for about 20 percent of global box office by 2020.
"While we acknowledge that there are some uncertainties related to Brexit, we are encouraged that current currency rates are highly favorable to AMC with the pound falling to a three-decade low versus the dollar," AMC Chief Executive Adam Aron said in a statement.
The company's management are upbeat about the outlook of Odeon & UCI and are confident of a remarkable rise in revenue and profits, the statement added.
***
@ahojunk
I always believe Europe is a better M&A destination than the US because of less politicized intervention by the governments.
TaiShang
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Outbound mergers, acquisitions hit record
China Daily, August 11, 2016
Chinese outbound mergers and acquisitions hit a record in the first half of 2016, benefiting from smooth financing in the A-share market and the rise of financial investors, according to a report from PricewaterhouseCoopers on Wednesday.
There were 493 outbound merger and acquisition deals made in the first six months, an increase of 178.5 percent year-on-year. Their value totaled US$134.3 billion, an increase of 346.2 percent year-on-year, more than that of the previous two full years combined, PwC data showed.
Even after deducting China National Chemical Corporation's US$43 billion bid for Swiss seeds and pesticides group Syngenta AG, the biggest ever outbound M&A deal by a Chinese buyer, the value of China's outbound M&A activity grew by 203.3 percent year-on-year.
"The dramatic growth in outbound M&A deals is supported by the smooth financing in the stock market and the rise of alternative financial investors, such as the investment arms of large corporations and State-owned enterprises and insurers," said George Lu, PwC China transaction services partner.
Lu added that Chinese companies sought advanced technology, know-how and brands. They looked favorably on low valuations of some overseas assets and allocated funds globally to prevent risks.
"There was a sharp increase in outbound deal activity by both State-owned and private enterprises in the first half," said Leon Qian, PwC China transaction services northern China leader.
"But while private enterprises have dominated in terms of outbound M&A deals for some time, they have overtaken SOEs in terms of deal value as well, " said Qian, adding that two-thirds of the 20 largest outbound M&A deals in the first half were made by private enterprises.
Technology, consumer, media and entertainment sectors became the most popular in the first half among Chinese buyers since they can provide services to the emerging middle class and growing consumer culture in China, the report said.
Private equity investors and other alternative financial buyers with a huge supply of investable capital played an important role in outbound mergers and acquisitions.
Developed economies continued to attract Chinese buyers because they have technologies, platforms and brands. Plus, they have large and mature consumer markets.
Because of the strong performance of outbound mergers and acquisitions, China's total merger and acquisition activity also hit a record in the first six months－growing to US$412.5 billion. This is up 21.2 percent by deal volume and 26.7 percent by deal value year-on-year.
"The outbound M&As will continue to be strong in the second half and Chinese buyers can be aggressive bidders in auction situations," said Qian.
Qian said Chinese outbound M&A activities by financial investors will continue to grow because major deals require huge funds available in China. "2016 is already a record year for China's outbound M&As, and the full-year deal value is expected to be more than 3 times the previous record set in 2015," said Qian.
China Daily, August 11, 2016
Chinese outbound mergers and acquisitions hit a record in the first half of 2016, benefiting from smooth financing in the A-share market and the rise of financial investors, according to a report from PricewaterhouseCoopers on Wednesday.
There were 493 outbound merger and acquisition deals made in the first six months, an increase of 178.5 percent year-on-year. Their value totaled US$134.3 billion, an increase of 346.2 percent year-on-year, more than that of the previous two full years combined, PwC data showed.
Even after deducting China National Chemical Corporation's US$43 billion bid for Swiss seeds and pesticides group Syngenta AG, the biggest ever outbound M&A deal by a Chinese buyer, the value of China's outbound M&A activity grew by 203.3 percent year-on-year.
"The dramatic growth in outbound M&A deals is supported by the smooth financing in the stock market and the rise of alternative financial investors, such as the investment arms of large corporations and State-owned enterprises and insurers," said George Lu, PwC China transaction services partner.
Lu added that Chinese companies sought advanced technology, know-how and brands. They looked favorably on low valuations of some overseas assets and allocated funds globally to prevent risks.
"There was a sharp increase in outbound deal activity by both State-owned and private enterprises in the first half," said Leon Qian, PwC China transaction services northern China leader.
"But while private enterprises have dominated in terms of outbound M&A deals for some time, they have overtaken SOEs in terms of deal value as well, " said Qian, adding that two-thirds of the 20 largest outbound M&A deals in the first half were made by private enterprises.
Technology, consumer, media and entertainment sectors became the most popular in the first half among Chinese buyers since they can provide services to the emerging middle class and growing consumer culture in China, the report said.
Private equity investors and other alternative financial buyers with a huge supply of investable capital played an important role in outbound mergers and acquisitions.
Developed economies continued to attract Chinese buyers because they have technologies, platforms and brands. Plus, they have large and mature consumer markets.
Because of the strong performance of outbound mergers and acquisitions, China's total merger and acquisition activity also hit a record in the first six months－growing to US$412.5 billion. This is up 21.2 percent by deal volume and 26.7 percent by deal value year-on-year.
"The outbound M&As will continue to be strong in the second half and Chinese buyers can be aggressive bidders in auction situations," said Qian.
Qian said Chinese outbound M&A activities by financial investors will continue to grow because major deals require huge funds available in China. "2016 is already a record year for China's outbound M&As, and the full-year deal value is expected to be more than 3 times the previous record set in 2015," said Qian.
艹艹艹
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Spotlight: China Cosco Shipping acquires majority stake in Greek port to boost economy
2016-08-11 03:06:05 | Editor: huaxia
COSCO SHIPPING PANAMA docks at Piraeus port, Greece, June 11, 2016. (Xinhua/Marios Lolos)
ATHENS, Aug. 10 (Xinhua) -- Marking a milestone agreement for Sino-Greek collaboration, China Cosco Shipping on Wednesday acquired a majority stake in Piraeus Port Authority (PPA) through the Athens Stock Exchange, it was reported Wednesday.
The Chinese company signed a memorandum of understanding at the Hellenic Republic Asset Development Fund (HRADF), formally completing the transfer of a 51 percent equity holding in PPA and the custody of an additional 16 percent stake.
Cosco Shipping Hong Kong, wholly owned by Cosco Shipping, thus officially became the controlling shareholder of the port, and took over its management and operation.
President of Cosco Shipping Wan Min visited the Athens Stock Exchange, accompanied by HRADF chairman Stergios Pitsiorlas, and rang the bell at the opening session, marking the debut of a new era at Greece's largest port.
Gao Wenqi, Charge d'Affaires of the Chinese Embassy in Greece, Charalampos Gotsis, chairman of the Hellenic Capital Market Commission and other Greek and Chinese officials attended the ceremony.
"I was delighted and honored to represent Cosco Shipping and ring the opening bell at the Athens Stock Exchange," Wan said addressing the ceremony.
The Piraeus project represents a key milestone in the Belt and Road initiative, and the port's growth and prosperity will boost economic development both in China and Greece, ushering in a new era of trade cooperation and cultural exchange between east and west, he said.
Wan stated Cosco Shipping will embark on a new series of operational investments that will streamline the port's performance as well as improve its international position, and help PPA reach its full potential to become one of the leading ports in Europe. "Cosco Shipping will not only operate a state-of-the-art port that will boost trading links between Asia and Europe, but will also help create jobs and invigorate the Greek economy," he added.
HRADF's chairman Pitsiorlas said the deal was "an important moment."
"The cooperation at Piraeus port is not just an economic collaboration but has strategic characteristics. Greece, via the Piraeus port, can indeed become China's gateway into Europe to the benefit of China and Greece," he told Xinhua.
Athens Exchange Group chairman Iakovos Georganas said the day may prove a historic one for the Athens Stock Exchange. "It is more important to underline that the Greek economy is approaching the recovery stage. Next year, the Greek economy will achieve growth after seven years of recession. This important transaction is a potential beginning for the recovery," he said.
The majority of PPA shares were sold to Cosco Shipping. A total of 12,750,000 shares were sold for 22 euros per share, totaling 280.5 million euros (313.52 million U.S. dollars).
Wednesday's deal is the first overseas acquisition transaction signed by Cosco Shipping following its establishment, a landmark initiative for the group to expand its global network, the firm said.
According to the concession contract, Cosco will acquire the 67 percent stake in PPA for 368.5 million euros in two stages.
Cosco Shipping will also invest 293.8 million euros in a series of mandatory projects in the next five to seven years, including the expansion of the cruise port, the upgrading of the ship-building zone, and the construction of a multi-storied garage in the Ro-Ro vessel port.
In the future, the group plans to step up its investment to develop the Piraeus Port into one of the largest container transit ports in Europe, one of the biggest home ports for cruise operators in the world and the logistics distribution center in the Mediterranean.
Cosco Shipping will improve supporting facilities, so as to boost the ship repairing capacity and seek opportunities for repairing offshore equipment. The group will also reform the Ro-Ro vessel port, which will make the port the largest auto terminal in the Mediterranean.
Furthermore, it plans to accelerate the construction of the China-Europe Land-Sea Express Line to boost economic growth in eastern and southern Europe.
According to HRADF, the total value of the agreement amounts to 1.5 billion euros and includes among others the offer, the mandatory investments over the next decade and the expected revenues from the concession agreement for Greece, amounting to 410 million euros.
President of Cosco Shipping Wan Min (3rd L) rings the bell at the opening session, marking the debut at Greece's largest port at the Athens Stock Exchange in Athens, Greece, Aug. 10, 2016. Cosco Shipping on Wednesday acquired a majority stake in Piraeus Port Authority through the Athens Stock Exchange, it was reported Wednesday. (Xinhua/Marios Lolos)
The total amount takes also into account the expected dividends and interest receivable by HRADF as well as the estimated investments (apart from the mandatory) until the expiration of the concession in 2052.
Cosco Shipping was declared in February preferred investor for the sale of the controlling stake in Piraeus port after winning an international tender.
On June 30, the deal was ratified by the Greek parliament shortly before Greek Prime Minister Alexis Tsipras' visit to China.
Greek and Chinese officials and entrepreneurs as well as independent analysts have welcomed the acquisition as a win-win cooperation step.
The privatization of PPA is expected to help debt-laden Greece boost growth and exit the debt crisis through the transformation of Piraeus into a leading transit hub for products and services from Asia to Europe.
PPA's privatization will help create 125,000 jobs, according to a survey of the Foundation for Economic and Industrial Research, one of Greece's leading think tanks.
The ground to reach the landmark agreement was paved by the remarkable results of Cosco Shipping's presence at Piraeus in recent years.
Since 2010, Cosco Shipping's subsidiary Piraeus Container Terminal has been operating Piers II and III at Piraeus port under a 35-year concession agreement. The international financial crisis and the Greek debt crisis seem to have cast no shadow over the Mediterranean port.
Its cargoes loaded and unloaded totaled 3.36 million TEUs (20-foot equivalent units) in 2015 compared to 880,000 TEUs in 2010. The port is now ranked 39th globally up from 93rd in 2010 in terms of container capacity.
2016-08-11 03:06:05 | Editor: huaxia
COSCO SHIPPING PANAMA docks at Piraeus port, Greece, June 11, 2016. (Xinhua/Marios Lolos)
ATHENS, Aug. 10 (Xinhua) -- Marking a milestone agreement for Sino-Greek collaboration, China Cosco Shipping on Wednesday acquired a majority stake in Piraeus Port Authority (PPA) through the Athens Stock Exchange, it was reported Wednesday.
The Chinese company signed a memorandum of understanding at the Hellenic Republic Asset Development Fund (HRADF), formally completing the transfer of a 51 percent equity holding in PPA and the custody of an additional 16 percent stake.
Cosco Shipping Hong Kong, wholly owned by Cosco Shipping, thus officially became the controlling shareholder of the port, and took over its management and operation.
President of Cosco Shipping Wan Min visited the Athens Stock Exchange, accompanied by HRADF chairman Stergios Pitsiorlas, and rang the bell at the opening session, marking the debut of a new era at Greece's largest port.
Gao Wenqi, Charge d'Affaires of the Chinese Embassy in Greece, Charalampos Gotsis, chairman of the Hellenic Capital Market Commission and other Greek and Chinese officials attended the ceremony.
"I was delighted and honored to represent Cosco Shipping and ring the opening bell at the Athens Stock Exchange," Wan said addressing the ceremony.
The Piraeus project represents a key milestone in the Belt and Road initiative, and the port's growth and prosperity will boost economic development both in China and Greece, ushering in a new era of trade cooperation and cultural exchange between east and west, he said.
Wan stated Cosco Shipping will embark on a new series of operational investments that will streamline the port's performance as well as improve its international position, and help PPA reach its full potential to become one of the leading ports in Europe. "Cosco Shipping will not only operate a state-of-the-art port that will boost trading links between Asia and Europe, but will also help create jobs and invigorate the Greek economy," he added.
HRADF's chairman Pitsiorlas said the deal was "an important moment."
"The cooperation at Piraeus port is not just an economic collaboration but has strategic characteristics. Greece, via the Piraeus port, can indeed become China's gateway into Europe to the benefit of China and Greece," he told Xinhua.
Athens Exchange Group chairman Iakovos Georganas said the day may prove a historic one for the Athens Stock Exchange. "It is more important to underline that the Greek economy is approaching the recovery stage. Next year, the Greek economy will achieve growth after seven years of recession. This important transaction is a potential beginning for the recovery," he said.
The majority of PPA shares were sold to Cosco Shipping. A total of 12,750,000 shares were sold for 22 euros per share, totaling 280.5 million euros (313.52 million U.S. dollars).
Wednesday's deal is the first overseas acquisition transaction signed by Cosco Shipping following its establishment, a landmark initiative for the group to expand its global network, the firm said.
According to the concession contract, Cosco will acquire the 67 percent stake in PPA for 368.5 million euros in two stages.
Cosco Shipping will also invest 293.8 million euros in a series of mandatory projects in the next five to seven years, including the expansion of the cruise port, the upgrading of the ship-building zone, and the construction of a multi-storied garage in the Ro-Ro vessel port.
In the future, the group plans to step up its investment to develop the Piraeus Port into one of the largest container transit ports in Europe, one of the biggest home ports for cruise operators in the world and the logistics distribution center in the Mediterranean.
Cosco Shipping will improve supporting facilities, so as to boost the ship repairing capacity and seek opportunities for repairing offshore equipment. The group will also reform the Ro-Ro vessel port, which will make the port the largest auto terminal in the Mediterranean.
Furthermore, it plans to accelerate the construction of the China-Europe Land-Sea Express Line to boost economic growth in eastern and southern Europe.
According to HRADF, the total value of the agreement amounts to 1.5 billion euros and includes among others the offer, the mandatory investments over the next decade and the expected revenues from the concession agreement for Greece, amounting to 410 million euros.
President of Cosco Shipping Wan Min (3rd L) rings the bell at the opening session, marking the debut at Greece's largest port at the Athens Stock Exchange in Athens, Greece, Aug. 10, 2016. Cosco Shipping on Wednesday acquired a majority stake in Piraeus Port Authority through the Athens Stock Exchange, it was reported Wednesday. (Xinhua/Marios Lolos)
The total amount takes also into account the expected dividends and interest receivable by HRADF as well as the estimated investments (apart from the mandatory) until the expiration of the concession in 2052.
Cosco Shipping was declared in February preferred investor for the sale of the controlling stake in Piraeus port after winning an international tender.
On June 30, the deal was ratified by the Greek parliament shortly before Greek Prime Minister Alexis Tsipras' visit to China.
Greek and Chinese officials and entrepreneurs as well as independent analysts have welcomed the acquisition as a win-win cooperation step.
The privatization of PPA is expected to help debt-laden Greece boost growth and exit the debt crisis through the transformation of Piraeus into a leading transit hub for products and services from Asia to Europe.
PPA's privatization will help create 125,000 jobs, according to a survey of the Foundation for Economic and Industrial Research, one of Greece's leading think tanks.
The ground to reach the landmark agreement was paved by the remarkable results of Cosco Shipping's presence at Piraeus in recent years.
Since 2010, Cosco Shipping's subsidiary Piraeus Container Terminal has been operating Piers II and III at Piraeus port under a 35-year concession agreement. The international financial crisis and the Greek debt crisis seem to have cast no shadow over the Mediterranean port.
Its cargoes loaded and unloaded totaled 3.36 million TEUs (20-foot equivalent units) in 2015 compared to 880,000 TEUs in 2010. The port is now ranked 39th globally up from 93rd in 2010 in terms of container capacity.
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From Made In China To Owned By China: Chinese Enterprises Buying Up Western Companies At Record Pace
Wade Shepard ,
CONTRIBUTOR
I travel to emerging markets around Asia and report on what I find.
Opinions expressed by Forbes Contributors are their own.
“The Chinese aren’t coming, they’re already here.”
I’ve been told this repeatedly as I’ve traveled across Eurasia looking into Chinese investments along the New Silk Road. But it’s not just trans-continental highways and rail lines, industrialand special economic zones, and new cities that China is interested in pumping money into abroad, but foreign companies as well. China’s outbound merger and acquisition (M&A) investment in the West has been growing at a record pace, as more and more major American and European companies are strategically being bought up by Chinese enterprises.
According to a recent report by the Mergermarket Group, by the end of August China had already surpassed its yearly record for outbound M&A investment. With 173 deals worth $128.7 billion in the books, China is so far the top acquirer of foreign companies in 2016 — a position which, if held until the end of year, could unseat the USA for the first time since 2006.
“China has seen continuous annual growth in both outbound deal size and deal volume in the recent ten years,” said Yiqing Wang, Mergermarket’s China editor. “However, 2015 and 2016 have witnessed [an] even more aggressive growth spree.”
Chairman of Swiss farm chemicals giant Syngenta, Michel Demare (R) shakes hand with Chairman of ChemChina Ren Jianxin during a press conference to present Syngenta’s annual results at the company’s headquarters in Basel on February 3, 2016. State-owned China National Chemical Corp on February 3, 2016 offered $43 billion in an agreed takeover for Swiss pesticide and seed giant Syngenta, in what would be by far the biggest-ever overseas acquisition by a Chinese firm. (MICHAEL BUHOLZER/AFP/Getty Images)
The types of foreign firms that Chinese companies are most interested in acquiring have moved beyond the usual resource and energy sectors and into the technology, industrial, chemical, and consumer spaces, which closely mirrors the broader economic transition that is currently underway in China — which is focused on moving away from export-driven manufacturingtowards high-end, high-tech R&D and domestic consumption.
In addition to being numerous, many of China’s takeovers of Western companies this year have also been huge. ChemChinaacquired the Swiss pesticide and seed producer Syngenta AG for $43 billion — the largest overseas acquisition by a Chinese company to date. Tencent took over Supercell, the Finnish mobile game developer, for $8.6 billion. Zhongwang Internationalbought out US aluminum producer Aleris for US$2.3 billion.HNA Group purchased Ingram Micro Inc for $6.3 billion. Haier Group paid $5.4 billion for General Electric’s home appliance division. While even the Chicago Stock Exchange hasn’t remained off the radar of Chinese investors.
Europe has been the prime focus of Chinese M&A investment this year, with $76.5 billion going towards the acquisition of European firms. Germany is the European country drawing the most interest from Chinese pursuers, as 24 German companies —roughly one per week — have been acquired by Chinese enterprises as of June of this year. For scale, in all of last year there were only 25 such transactions.
But if we think that Chinese companies are bailing on China by buying up foreign companies we’d be mistaken. One of the major drivers behind this phenomenon is actually the exact opposite.
“We found that [the] majority of the deep pocket Chinese acquirers aim to obtain high-end, world-class technology [to take] back home to add on [to] their current product development skills,” said Mergermarket’s Wang.
This movement is in line with China’s “Made in China 2025” initiative, which seeks to upgrade and enhance the country’s domestic manufacturing capabilities, bolster innovation, and establish ownership of key technologies. In this light, even though the cost of China’s Western shopping spree is in the hundreds of billions of dollars, the long-term economic benefit and future scalability of what is actually being acquired is thought to be a bargain.
China’s hunger for key foreign companies also complies with the “Going Out policy,” which is an initiative by the country’s central government to encourage domestic companies to go abroad to make investments, utilize foreign reserves, establish consumer bases, as well as enhance China’s international political and economic influence — much of which can be accomplished through M&A.
With the year-on-year growth rate of China’s domestic economyleveling off, the country’s wage advantage rapidly vanishing, the large amount of political and financial support for outbound investment, a booming consumer market at home, and the new infrastructure network that is rapidly spanning across Eurasia, now is a riper time than ever for Chinese companies to venture into foreign terrain. Which is to say, expect this movement to continue growing.
“After all,” Wang concluded, “it’s just the beginning of their globalization spree.”
I'm the author of Ghost Cities of China. I'm currently traveling the New Silk Road doing research for a new book. Follow by RSS.
http://www.forbes.com/sites/wadeshe...tern-companies-at-record-pace/2/#2fb6072334b6
Source: https://defence.pk/threads/from-mad...ompanies-at-record-pace.448900/#ixzz4UQw5LFhg
Wade Shepard ,
CONTRIBUTOR
I travel to emerging markets around Asia and report on what I find.
Opinions expressed by Forbes Contributors are their own.
“The Chinese aren’t coming, they’re already here.”
I’ve been told this repeatedly as I’ve traveled across Eurasia looking into Chinese investments along the New Silk Road. But it’s not just trans-continental highways and rail lines, industrialand special economic zones, and new cities that China is interested in pumping money into abroad, but foreign companies as well. China’s outbound merger and acquisition (M&A) investment in the West has been growing at a record pace, as more and more major American and European companies are strategically being bought up by Chinese enterprises.
According to a recent report by the Mergermarket Group, by the end of August China had already surpassed its yearly record for outbound M&A investment. With 173 deals worth $128.7 billion in the books, China is so far the top acquirer of foreign companies in 2016 — a position which, if held until the end of year, could unseat the USA for the first time since 2006.
“China has seen continuous annual growth in both outbound deal size and deal volume in the recent ten years,” said Yiqing Wang, Mergermarket’s China editor. “However, 2015 and 2016 have witnessed [an] even more aggressive growth spree.”
Chairman of Swiss farm chemicals giant Syngenta, Michel Demare (R) shakes hand with Chairman of ChemChina Ren Jianxin during a press conference to present Syngenta’s annual results at the company’s headquarters in Basel on February 3, 2016. State-owned China National Chemical Corp on February 3, 2016 offered $43 billion in an agreed takeover for Swiss pesticide and seed giant Syngenta, in what would be by far the biggest-ever overseas acquisition by a Chinese firm. (MICHAEL BUHOLZER/AFP/Getty Images)
The types of foreign firms that Chinese companies are most interested in acquiring have moved beyond the usual resource and energy sectors and into the technology, industrial, chemical, and consumer spaces, which closely mirrors the broader economic transition that is currently underway in China — which is focused on moving away from export-driven manufacturingtowards high-end, high-tech R&D and domestic consumption.
In addition to being numerous, many of China’s takeovers of Western companies this year have also been huge. ChemChinaacquired the Swiss pesticide and seed producer Syngenta AG for $43 billion — the largest overseas acquisition by a Chinese company to date. Tencent took over Supercell, the Finnish mobile game developer, for $8.6 billion. Zhongwang Internationalbought out US aluminum producer Aleris for US$2.3 billion.HNA Group purchased Ingram Micro Inc for $6.3 billion. Haier Group paid $5.4 billion for General Electric’s home appliance division. While even the Chicago Stock Exchange hasn’t remained off the radar of Chinese investors.
Europe has been the prime focus of Chinese M&A investment this year, with $76.5 billion going towards the acquisition of European firms. Germany is the European country drawing the most interest from Chinese pursuers, as 24 German companies —roughly one per week — have been acquired by Chinese enterprises as of June of this year. For scale, in all of last year there were only 25 such transactions.
But if we think that Chinese companies are bailing on China by buying up foreign companies we’d be mistaken. One of the major drivers behind this phenomenon is actually the exact opposite.
“We found that [the] majority of the deep pocket Chinese acquirers aim to obtain high-end, world-class technology [to take] back home to add on [to] their current product development skills,” said Mergermarket’s Wang.
This movement is in line with China’s “Made in China 2025” initiative, which seeks to upgrade and enhance the country’s domestic manufacturing capabilities, bolster innovation, and establish ownership of key technologies. In this light, even though the cost of China’s Western shopping spree is in the hundreds of billions of dollars, the long-term economic benefit and future scalability of what is actually being acquired is thought to be a bargain.
China’s hunger for key foreign companies also complies with the “Going Out policy,” which is an initiative by the country’s central government to encourage domestic companies to go abroad to make investments, utilize foreign reserves, establish consumer bases, as well as enhance China’s international political and economic influence — much of which can be accomplished through M&A.
With the year-on-year growth rate of China’s domestic economyleveling off, the country’s wage advantage rapidly vanishing, the large amount of political and financial support for outbound investment, a booming consumer market at home, and the new infrastructure network that is rapidly spanning across Eurasia, now is a riper time than ever for Chinese companies to venture into foreign terrain. Which is to say, expect this movement to continue growing.
“After all,” Wang concluded, “it’s just the beginning of their globalization spree.”
I'm the author of Ghost Cities of China. I'm currently traveling the New Silk Road doing research for a new book. Follow by RSS.
http://www.forbes.com/sites/wadeshe...tern-companies-at-record-pace/2/#2fb6072334b6
Source: https://defence.pk/threads/from-mad...ompanies-at-record-pace.448900/#ixzz4UQw5LFhg
Shotgunner51
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Wade Shepard ,
CONTRIBUTOR
I travel to emerging markets around Asia and report on what I find.
Opinions expressed by Forbes Contributors are their own.
“The Chinese aren’t coming, they’re already here.”
I’ve been told this repeatedly as I’ve traveled across Eurasia looking into Chinese investments along the New Silk Road. But it’s not just trans-continental highways and rail lines, industrialand special economic zones, and new cities that China is interested in pumping money into abroad, but foreign companies as well. China’s outbound merger and acquisition (M&A) investment in the West has been growing at a record pace, as more and more major American and European companies are strategically being bought up by Chinese enterprises.
According to a recent report by the Mergermarket Group, by the end of August China had already surpassed its yearly record for outbound M&A investment. With 173 deals worth $128.7 billion in the books, China is so far the top acquirer of foreign companies in 2016 — a position which, if held until the end of year, could unseat the USA for the first time since 2006.
“China has seen continuous annual growth in both outbound deal size and deal volume in the recent ten years,” said Yiqing Wang, Mergermarket’s China editor. “However, 2015 and 2016 have witnessed [an] even more aggressive growth spree.”
Chairman of Swiss farm chemicals giant Syngenta, Michel Demare (R) shakes hand with Chairman of ChemChina Ren Jianxin during a press conference to present Syngenta’s annual results at the company’s headquarters in Basel on February 3, 2016. State-owned China National Chemical Corp on February 3, 2016 offered $43 billion in an agreed takeover for Swiss pesticide and seed giant Syngenta, in what would be by far the biggest-ever overseas acquisition by a Chinese firm. (MICHAEL BUHOLZER/AFP/Getty Images)
The types of foreign firms that Chinese companies are most interested in acquiring have moved beyond the usual resource and energy sectors and into the technology, industrial, chemical, and consumer spaces, which closely mirrors the broader economic transition that is currently underway in China — which is focused on moving away from export-driven manufacturingtowards high-end, high-tech R&D and domestic consumption.
In addition to being numerous, many of China’s takeovers of Western companies this year have also been huge. ChemChinaacquired the Swiss pesticide and seed producer Syngenta AG for $43 billion — the largest overseas acquisition by a Chinese company to date. Tencent took over Supercell, the Finnish mobile game developer, for $8.6 billion. Zhongwang Internationalbought out US aluminum producer Aleris for US$2.3 billion.HNA Group purchased Ingram Micro Inc for $6.3 billion. Haier Group paid $5.4 billion for General Electric’s home appliance division. While even the Chicago Stock Exchange hasn’t remained off the radar of Chinese investors.
Europe has been the prime focus of Chinese M&A investment this year, with $76.5 billion going towards the acquisition of European firms. Germany is the European country drawing the most interest from Chinese pursuers, as 24 German companies —roughly one per week — have been acquired by Chinese enterprises as of June of this year. For scale, in all of last year there were only 25 such transactions.
But if we think that Chinese companies are bailing on China by buying up foreign companies we’d be mistaken. One of the major drivers behind this phenomenon is actually the exact opposite.
M&A
Compared with green-field investments (asset building e.g. new infra, new factories) in many developing economies, M&A is a more common form of outbound FDI (from China) to acquire matured assets in developed economies.
To supplement "Made in China 2025" initiative, China M&A's are tilted towards industrial stocks, which are usually found only in industrialized nations. Among which, Japan/Korea are very enclosed socio-economic systems (i.e. "Keiretsu", "Chaebol"), US has tight political censorship on M&A, hence EU becomes a favored destination especially when Euro is weaker against the dollar. Within EU, industrial assets in Germany attract most attentions from Chinese industrialists, Midea-Kuka deal is a typical sample.
To supplement "Made in China 2025" initiative, China M&A's are tilted towards industrial stocks, which are usually found only in industrialized nations. Among which, Japan/Korea are very enclosed socio-economic systems (i.e. "Keiretsu", "Chaebol"), US has tight political censorship on M&A, hence EU becomes a favored destination especially when Euro is weaker against the dollar. Within EU, industrial assets in Germany attract most attentions from Chinese industrialists, Midea-Kuka deal is a typical sample.
Global Trend
Driven by accumulating trade surpluses, current account surpluses, more outbound FDI from China is a natural trend. China Mainland is already world's second largest creditor (excluding Taiwan which is 4th largest, and Hong Kong which is 5th). However on a per capita basis, her net assets overseas (Net International Position) is still far lower than her East Asian peers (both HK and Singapore exceed a stunning +$130,000), still a lot of room to improve.
According to current momentum I believe China will overtake Japan in aggregate scale latest by 2025-2030, and among the top 10 in per capita by middle of the century.
The international community should work towards lowering or removing investment barriers (e.g. signing BIT's, or plurilateral framework), encourage free flow of capital, a win-win case between both China and deficit/indebted economies (particularly the US, which is the largest debtor nation), this should become one major goal for WTO and IMF to achieve in the coming decade.
According to current momentum I believe China will overtake Japan in aggregate scale latest by 2025-2030, and among the top 10 in per capita by middle of the century.
The international community should work towards lowering or removing investment barriers (e.g. signing BIT's, or plurilateral framework), encourage free flow of capital, a win-win case between both China and deficit/indebted economies (particularly the US, which is the largest debtor nation), this should become one major goal for WTO and IMF to achieve in the coming decade.
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TaiShang
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This also corresponds very well with the Eurasian orientation of the OBOR.
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