China M&A – Week in Review – 2-8 NOV 2015

China M&A – Week in Review – 2-8 NOV 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

China lifts IPO ban as stock market returns to health – Financial Times, 06/11/2015 “China has lifted its embargo on new stock market listings following a four-month freeze imposed during the dramatic fall in stock prices…The CSRC has often slowed or halted the flow of new share offerings during periods of market weakness to avoid siphoning demand away from existing shares.”

Alibaba, Baidu Turn `Kingmakers’ as China Sees Dealmaking Surge – Bloomberg, 05/11/2015 “China is in the midst of a surge in deal-making and won’t slow down anytime soon. China’s biggest Internet companies known collectively as BAT — are driving the consolidation, accounting for more than 40 percent of domestic deal-making in the industry.”

M&A wave set to hit China financial sector – Ejinsight, 06/11/2015 China’s economy is facing strong headwinds. Many firms sink deeper into losses and find it hard to collect receivables. More bankruptcies and heavy losses will affect micro lending firms, guarantee corporations as well as rural, municipal and provincial banks.

Inbound M&A


United PV acquires 100 MW PV plant in China – PV Magazine, 03/11/2015 “HK based United Photovoltaics Group Limited has acquired a 100 MW solar PV project from Hubei Jingtai Photovoltaics Power Company Limited for around US$134 million in which case Hubei Jingtai became a fully-owned subsidiary of United PV.”

Outbound M&A and Investment


China’s Rastar Group to acquire stake in Spanish club Espanyol – Reuters, 02/11/2015 “China’s Rastar Group said its Hong Kong unit will buy up to 56 percent stake in Spanish soccer club Espanyol as mainland companies continue their investment in European clubs… to expand its interactive entertainment business in the sports sector.”


Areva Says China’s CNNC May Buy Stake as Part of Nuclear Accord – Bloomberg, 02/11/2015 Another gain after Xi’s visit to Europe followed by the EDF acquisition, “China National Nuclear Corp. may buy a minority stake in Areva as part of a wide-ranging nuclear cooperation accord signed Monday just as the loss-making French reactor builder is seeking billions of euros to stay afloat.”


Ventripoint Announces Strategic Investment and Details of Share Consolidation – 03/11/2015 Ventripoint Diagnostics Ltd. (TSX Venture:VPT), a medical device company focus on diagnosis tools to monitor patients’ heart rates, announces that it intends to accept a strategic investment from Shanghai YuTian Medical Investment Management Co. Ltd. (“Ventrisound”), a Chinese Company.

Domestic M&A – Notable Deals


平安拟要约收购上海家化31%股份 – 上海证券报, 02/11/2015 PingAn plans to acquire Shanghai Jahwa, a domestic leading skin care and peronal care producer to better consolidate its portfolio.


West China Cement to buy Yaowangshan Cement for US$121m – GlobalCement, 02/11/2015 “West China Cement has agreed to acquire the entire equity interest of Tongchuan Yaowangshan Ecological Cement Co Ltd as well as shareholder’s loan of US$121m. The Yaowangshan cement plant in Yaowangshan, Tongchuan, Shaanxi has 2.2Mt/yr of cement production capacity.”


蓝色光标拟收购两家移动互联网营销公司 – 中国证券网, 03/11/2015 China’s Bluefocus Communication says plans to acquire 96.3 percent stake in tech firm Lanhan Tech for $291.93 million to indirectly gain stake of domestic leading smart phone advertising platform domob Limited.