China M&A – Week in Review – 28 SEPT–2 OCT 2015

China M&A – Week in Review – 28 SEPT–2 OCT 2015

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

M&A Trends

Chinese acquirers urged to raise their game as outbound M&A enter new era – CFOInnovation, 30/09/2015  Chinese deal making is on the upswing, but Chinese acquirers complete just 67 percent of outbound deals. The main culprits are unclear M&A strategies and ineffective due diligence… Even deals that are completed often fall short of their goals because of poorly planned and executed post-merger integration.

新三板成并购必争之地 天星资本登陆新三板抢食 – 中国证券报, 30/09/2015 The National Equities Exchange and Quotations’s (NEEQ) New Third Board (NTB) is expected to become a hot spot for for M&A.

Consolidation of LED Industry Continues in China – TrendForce, 28/092015 Overcapacity and low end focus of the Chinese industry calls for industry consolidation by domestic and cross-border M&A with Lumileds, Bridgelux and other international companies becoming targets.

Outbound M&A and Investment

China’s Anbang in the lead to acquire Fidelity & Guaranty Life – Reuters, 10/01/2015, 01/10/2015 Anbang is one of the most ambitious Chinese players in outbound M&A. Private held Anbang Insurance Group Co is in the lead to acquire Fidelity & Guaranty Life (NYSE: FGL), a financial interests holding company backed by Leucadia National Corp (NYSE: LUK) and previously controlled by hedge fund manager Philip Falcone.

China’s Tsinghua to buy Western Digital stake in U.S. tech push – Reuters, 01/10/2015   State-owned Tsinghua Holdings Co., Ltd. plans to buy a 15% stake in U.S. data storage company Western Digital Corp (NASDAQ: WDC), a world leader in hardrive technologies, a deal that could draw regulatory scrutiny amid increased national security concerns.

Alibaba, Ant Financial inject fresh cash into India’s Paytm – Reuters, 29/09/2015 Chinese e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA) and finance arm Ant Financial Services Group are injecting fresh capital into Paytm, India’s largest mobile payment and commerce platform in what the companies say is a strategic investment.

Tencent, eBay join Kakao bid for new S.Korean Internet bank – Reuters, 10/01/2015, 01/10/2015 Tencent and eBay (NASDAQ: EBAY) plans to buy 4% stake in Daum Kakao Corp., a South Korean multiplatform texting app maker to support its Internet-banking license.

Skyworth Digital: Group to Buy Stakes Of Toshiba’s Enterprises In China – Bloomberg, 28/09/2015 Electronic-products manufacturer Skyworth Digital Holdings Ltd. (HK: 0751) agreed to buy stakes of companies that were established by Toshiba Corp. (TO: 6502) in China, saying the move could boost the branding of both firms.

Bright buys into Spanish food distribution firm – ChinaDaily30/09/2015  Move expected to spearhead the company’s further expansion in Europe. China’s food giant Bright Food (Group) Co., Ltd. has completed the acquisition of Miquel Alimentacio Grup, Spain’s second largest food distributor in a move to expand Birght Food’s European distribution network.


Domestic M&A

葵花药业拟收购隆中药业控股权 上半年业绩平稳 – 前瞻网 08/25/2015  Shenzhen listed garment accessory manufacturer Zhejiang Weixing Industrial (SZ: 002003) plans to acquire 51% in ZhongJieShiDai, an aviation technology firm focus on premium aerospace GPS equipment for 153 million yuan.

Huizhou Speed Wireless to acquire stake in Shenzhen firm for 132.6 mln yuan – IFeng, 09/28/2015 08/27/2015 , Huizhou Speed Wireless Technology Co., Ltd. plans to acquire a 51% stake in Shenzhen Xuangui Precision Technology for $20.82 million in cash to expand its mobile terminal antenna business.

初灵信息收购视达科,进军互动媒体平台– 每日经济报道, 09/30/2015 08/27/2015  Data communication and network access equipment supplier CNCR-IT (SZ: 300250) acquired end-to-end OTT/IPTV solution provider STARCOR for $110 million to expand its big data business.

China Shineway Pharmaceutical Group Ltd says to acquire entire equity interests in Beijing Wanter Bio-Pharmaceutical Co – Reuters, 09/27/2015 08/27/2015  China Shineway Pharmaceutical Group (HK: 02877) to acquire Beijing Wanter Bio-Pharmaceutical Co. for 400 million yuan.