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

FOOD & AGRIBUSINESS

Chinese Firm Said to Take Control of Brazilian Soybean Exporter—Bloomberg,2/5/2016 “A unit of China’s Shanghai Pengxin Group Co. bought a controlling stake in Brazil’s soybean trader and biodiesel maker Fiagril Ltda for $286 million, said a person with direct knowledge of the matter, who asked not to be identified because the details of the deal haven’t been published.”

FINANCIAL SERVICES

Pension insurer taps Chinese investors in £250m fundraising—The telegraph,5/5/2016“Pension Insurance Corporation (PIC) has raised £250m in a rights issue, which included bringing Chinese investors into the group.PIC, which organises pension buy-outs and buy-ins to cover pension liabilities, is raising up to £110m from Chinese group Legend Holdings and up to £140m from existing investors Reinet Fund.”

Inbound M&A into China

PROFESSIONAL SERVICES

Li & Fung sells distribution unit to DCH for $350 million, Bloomberg ,

3/5/2016 “Li & Fung Ltd., the sourcing company that supplies clothes and toys to U.S. retailers such as Wal-Mart Stores Inc., said it agreed to sell its distribution unit LF Asia to Dah Chong Hong Holdings Ltd. for about $350 million in order to simplify its businesses and focus on trading and logistics.The deal is expected to close by the end of June, and the proceeds will be used for working capital and to strengthen its capital structure.”

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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