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

ENERGY

China’s SDIC acquires UK offshore projects from Repsol–Wind Power, 25/2/2016 “Chinese state-owned investment holding company State Development and Investment Corporation (SDIC) has acquired Repsol’s offshore wind power business, including the Inch Cape and Beatrice offshore wind projects, for €238 million.”

China’s ENN buys $750 mln stake in Australia’s Santos–Reuters, 23/3/2016 “March 24 Chinese gas distributor ENN is set to become the top shareholder in Australian gas producer Santos after agreeing to buy a $750 million stake from Hony Capital in a push to ease its dependence on China’s state-owned giants for supply.”

 China-based Geo-Jade Petroleum Corp offers $575 million cash to take over Bankers Petroleum Ltd–Financial Post,21/3/2016 “CALGARY — Bankers Petroleum Ltd. has received a friendly takeover offer that values the Calgary-based company at $575 million, excluding debt obligations…The offer is worth $2.20 per Bankers share cash, about double the Friday closing price of $1.11 per share.”

 TRANSPORTATION

China’s CREC to setup US$2b regional centre in Bandar Malaysia–Malaymail Online, 21/3/2016 “China Railway Group Limited (CREC) will spend US$2 billion (RM8.14 billion) to set up its regional centre in the Bandar Malaysia land bank. Prime Minister Datuk Seri Najib Razak who made the announcement today, said the project will be a major investment boost for Malaysia.”

Inbound M&A into China

REAL ESTATE

Yanlord Land purchases 2 land plots in Tianjin – DealStreetAsia, 21/3/2016

“Sun Hung Kai Properties purchased a commercial plot during an auction in Shanghai yesterday for 21.8 billion yuan ($3.6 billion), a record high for the city…Sunac China Holdings beat seven bidders for the residential plot, paying 73,000 yuan a square meter.”

Domestic M&A – Notable Deals

AUTOMOTIVE

Two Chinese carmakers make major acquisitions – China Daily, 21/3/2016 “Two State-owned Chinese carmakers made major acquisitions last week that experts say will boost their profitability and expand their economic footprints…BAIC Motor Corp, based in Beijing and partially owned by Daimler AG, acquired a 35-percent stake in Fujian Benz Automotive Co on March 14, becoming the second-largest shareholder in the automaker.”

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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.

Contact us for more information.

 

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