China M&A Week in Review is SSCO’s weekly summary of deals and key developments in China related Mergers and Acquisitions. Our emphasis is on cross-border deals.

This Week’s Links:

Outbound M&A and Investment

MANUFACTURING

Fuyao: The numbers keep getting bigger–Bizjournals, 14/3/2016 “The figure now stands at $700 million. That’s how much China-based Fuyao Group has invested to set up its new operations in the United States, Fuyao Glass America Inc., capped off with the Moraine auto glass factory where it has put in more than $450 million.”

TRAVEL, TOURISM & LODGING

Chinese consortium gatecrashes Starwood takeover with $12.9bn bid–The telegraph,14/3/2016 “A takeover battle has erupted for Starwood Hotels & Resorts after a consortium led by a Chinese insurance giant made a $12.9bn(£9bn) bid for the Westin and Sheraton owner, gate-crashing a deal agreed with Marriott International.”

Chinese consortium gatecrashes Starwood takeover with $12.9bn bid—The telegraph,14/3/2016 “A takeover battle has erupted for Starwood Hotels & Resorts after a consortium led by a Chinese insurance giant made a $12.9bn  (£9bn) bid for the Westin and Sheraton owner, gate-crashing a deal agreed with Marriott International.”

ENERGY

China’s State Power buys Australian wind farm for $227million:  sources–Reuters, 14/3/2016 “China’s state-owned utility State Power Investment Corp [CPWRI.UL], fresh from a $2.5 billion acquisition of Australian renewable company Pacific Hydro Pty Ltd, has signed an agreement with Banco Santander to acquire its Australian Taralga Wind Farm Pty Ltd for an enterprise value of about A$300m (US$227m).”

HEALTHCARE

Jangho ups stake in Australia’s Primary Health Care–China Go Abroad, 18/3/2016 “Jangho has recently spent A$176m purchasing Primary Health Care shares from the Australian Stock Exchange, bringing its holdings to 11.17%. It expects that the deal will help it introduce Primary Health Care’s pathological and imaging technology into China.”

China’s Jangho, HK broker Haitong take stakes in Primary Health—The Australian,18/3/2016

“Chinese medical concern Jangho has emerged with an 11.2 per cent slice of Primary Health, on the same day that Hong Kong broker Haitong declared a 5.2 per cent stake in the health care company…Primary said it would expand its network of medical centres and imaging centres in Australia and was looking to Asia to expand its pathology division.”

Inbound M&A into China

HEALTHCARE

Bain Capital Acquires Control In Asian Pacific Medical Group For $150M, China Money Network, 17/3/2016  “Bain Capital Private Equity has acquired a large majority stake in private hospital operator Asia Pacific Medical Group (APMG) from existing shareholders…Deal terms are not disclosed, but the Wall Street Journal has reported citing people familiar with matter that the capital injection amounted to US$150 million.”

CONSUMER PRODUCTS

FGV gets MoF nod to buy stake in Zhong Ling, The Star Online,18/3/2016 “Felda Global Ventures Holdings Bhd has received the nod from the Finance Ministry to acquire a 55% stake in China-based edible oil producer Zhong Ling Nutril-Oil Holdings Ltd…the Zhong Ling deal is worth RM976.25mil, of which under the terms of the deal, FGV has agreed to pay a sum of RM537.05mil to Zhong Hai Investment Holdings Ltd for a 26.4% stake in Zhong Ling.”

Domestic M&A – Notable Deals

No significant deals were reported.

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About Stenvall Skoeld & Company

Stenvall Skoeld & Company (SSCO) is an M&A advisory firm with global reach on cross-border transactions. We act as financial advisors to buyers and sellers on mergers, acquisitions, divestitures, capital raises and other strategic and financial transactions and investment decisions. We specialize in cross-border transactions involving Asia, China in particular.

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