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

ENTERTAINMENT

China’s Tencent buys ‘Clash of Clans’ maker Supercell for $8.6 billion—Reuters,21/6/2016 “China’s biggest gaming group Tencent Holdings Ltd (0700.HK) is to buy a majority stake in ‘Clash of Clans’ mobile game maker Supercell from SoftBank Group Corp (9984.T) in a deal valued at roughly $8.6 billion…Tencent will acquire about 84.3 percent of Supercell via a wholly-owned consortium, including all of SoftBank’s 72.2 percent stake.”

TMT

Telstra Completes $1.6 Billion Sale of Autohome Stake to Ping An—Bloomberg,22/6/2016 “Australia’s Telstra Corp. completed the sale of a 47 percent stake in Chinese website Autohome Inc. to Ping An Insurance Group Co. for $1.6 billion…The Melbourne-based phone company will book an accounting gain of A$1.8 billion ($1.4 billion) on the sale and indicated it would use most of the proceeds to return cash to shareholders.”

INDUSTRIAL AUTOMATION

Weichai Power unit KION in US$2.1 billion European acquisition—South China Morning Post, 22/6/2016 “Weichai Power, through its European unit KION Group, has agreed to buy loss-making Luxembourg-based DH Services, a supplier of automation technology, for around US$2.1 billion in a deal that will enable the Shandong province-based automotive and equipment maker it to tap growing logistics demand from the e-commerce sector.”

Inbound M&A into China

No significant deals were reported.

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.

Contact us for more information.

 

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