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
ENERGY
Lansing Trade Group says sells 20 percent stake to New Hope Liuhe Co. – Reuters, 8/12/2015 “U.S. grains and energy merchant Lansing Trade Group LLC sold a 20 percent stake of its business to Chinese animal feed maker and meat processor New Hope Liuhe Co , a Lansing official said on Tuesday…New Hope Liuhe said in October it was setting up a wholly owned U.S.-based subsidiary, which would invest $127.50 million to acquire a 20 percent stake in a U.S. trading group.”
China’s Sinopec to pay $1.3 billion for 10 percent stake in Russia’s Sibur – Reuters, 11/12/2015 “China Petrochemical Corporation (Sinopec Group) will buy up to 20 percent in Sibur, Russia’s top petrochemical company. Sinopec will pay $1.338 billion, while it would acquire for the first 10 percent, another 10 percent within next three years.”
China’s Inspur Group in joint venture with Zim govt – itweb Africa, 11/12/2015
“Zimbabwe government has announced a multi-million dollar joint venture this week with Chinese IT firm Inspur Group to manufacture computers…The estimated value of the investment deals is said to be over $4 billion and add to China’s existing interests in Zimbabwe’s chrome and diamond mining, as well as cement manufacturing sectors.”
ENTERTAINMANT
China’s Wanda Group Eyes Investment in Legendary Pictures – Variety，8/12/2015 “Chinese entertainment giant Wanda Group is considering acquiring a significant minority stake in Legendary Pictures, the Hollywood studio run by Thomas Tull that has built a substantial, multi-genre content operation from a base of fantasy and gamer franchises…Legendary has had a significant interest in China for the past several years.”
TECHONOLOGY
China’s Unigroup to pay $2 billion for stakes in two Taiwan chip companies – Reuters,11/12/2015 “Tsinghua Unigroup is investing a total of T$68.7 billion ($2.09 billion) for owning a quarter each of ChipMOS Technologies Inc (8150.TW) and Siliconware Precision Industries Co Ltd (SPIL) (2325.TW)…in November it plans to invest 300 billion yuan ($46.48 billion) over the next five years in a bid to become the world’s third-biggest chipmaker.”
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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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