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

PULP, PAPER & PACKAGING

Chinese company to build $1 billion state-of-the-art paper mill in Arkans–Pressherald,26/4/2016 “The Chinese company Sun Paper announced plans Tuesday for a $1 billion mill in southern Arkansas, the paper company’s first facility in North America. Joined by Sun Paper officials to announce the project at the state Capitol, Gov. Asa Hutchinson said the project will create 250 jobs and is one of the largest private investments in Arkansas’ history.”

TOURISM

China’s HNA Group agrees to buy Carlson Hotels—Reuters, 28/4/2016

“HNA Tourism Group, part of HNA Group Co Ltd [HNAIRC.UL], will buy 100 percent of U.S-based Carlson Hotels Inc for an undisclosed sum, including its 51.3 percent stake in Rezidor Hotel Group (REZT.ST) AB, the companies said late on Wednesday…The deal will give HNA hotel brands including Radisson, Park Plaza, Country Inns & Suites and 1,400 hotels in 115 countries, adding to HNA’s current portfolio of 500 hotels.”

Inbound M&A into China

FINANCIAL SERVICES

Mainland China developer Evergrande increases stake in Shengjing Bank,South China Morning Post, 27/4/2016 “Debt-laden mainland China developer Evergrande Real Estate said on Thursday it will pay 10 billion yuan (HK$ 11.9 billion) to increase its stake in Shengjing Bank to 27.24 per cent… China’s second-largest home builder, said in a statement to the Hong Kong stock exchange it would buy 1 billion Shengjing shares from five domestic shareholders for an additional 17.28 per cent stake in Shengjing Bank.”

Domestic M&A – Notable Deals

TOURISM

Ctrip to buy China Eastern stock for $463 million in tie-up, Bloomberg,04/27/2016 “The Shanghai-based provider of online travel services will buy as much as 3.55 percent of the airline at a floor price 6.44 yuan apiece on its A shares…China Eastern shares fell 1.5 percent in Hong Kong on Wednesday to HK$4.57 and advanced 3.6 percent to 6.62 yuan in Shanghai.”

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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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