The following press releases and news reports about China companies were carried on June 4-6. To view a full article or story, click on the link next to the headline.
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Accor Gains After Report That Jin Jiang (HKEx: 2006) Aims to Increase Stake (English article)
China’s HNA Group Eyes South American Airline Groups Avianca – Sources (English article)
SoftBank Proceeds From Alibaba (NYSE: BABA) Selldown Rise to $10 Bln (English article)
Huawei Aims to Pass Samsung, Apple in 5 Years to Become Top Smartphone Brand (Chinese article)
Indian Smartphone Maker Micromax Plans to Enter China Next Year (Chinese article)
Bottom line: Washington is likely to find Huawei guilty of illegally selling US equipment to Iran, while Germany is likely to scuttle a Midea-Kuka alliance by finding an alternate strategic local investor for Kuka.
US seeks documents from Huawei
Cross-border trade involving sensitive technologies is dominating the headlines as we head into summer, lead by a new development in Washington that looks ominous for Chinese telecoms giant Huawei. That news has the US asking Huawei for documents related to previous sanctions against the company, implying new sanctions could be coming over sales to Iran that may have violated US trade rules. The other headline shows opposition continuing to grow in Germany over a proposed purchase of 30 percent of local robotics firm Kuka (Frankfurt: KU2G) by Chinese home appliance giant Midea (Shenzhen: 000333). Read Full Post…
Bottom line: Midea’s plan to buy 30 percent of German robotics maker Kuka is likely to collapse due to EU resistance, reflecting growing wariness towards China’s global buying spree of western technology.
EU official sounds alarm at Midea’s Kuka buy
Alarmism at China’s growing string of global M&A is spreading from the US to Europe, with growing signs of resistance to the recently announced purchase by Chinese company of a major stake in a leading German robotics firm. Two separate new headlines point to the nascent resistance against the landmark deal announced 2 weeks ago, which would see Chinese home appliance maker Midea (Shenzhen: 000333) acquire 30 percent of Germany’s Kuka (Frankfurt: KU2G) for more than $1 billion. (previous post) According to the latest reports, a top European Union (EU) industry official and one of Kuka’s largest shareholders are separately expressing reservations about the deal, in what almost looks like a coordinated effort to show the uneasiness some Europeans are feeling. Read Full Post…
The following press releases and news reports about China companies were carried on June 3. To view a full article or story, click on the link next to the headline.
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Didi Chuxing, Uber Compete for Most Funds in Latest Drives (Chinese article)
Alibaba (NYSE: BABA) Announces Terms of Share Purchase from SoftBank (Businesswire)
China Says Midea’s (Shenzhen: 000333) German Robot Deal Shouldn’t be Politicized (English article)
Taobao Invests 28.2 Bln Yuan in Suning (Shenzhen: 002024), Becomes 2nd Largest Shareholder (Chinese article)
US Requests Documents From Huawei on Previous Trade Sanctions (Chinese article)
Bottom line: Microsoft probably took a 10-20 percent stake in Xiaomi as part of the pair’s new alliance, and could use the Chinese company as its primary vehicle for participating in the mobile devices market.
Xiaomi lines up with Microsoft
The high-tech world is buzzing today with news of a major new tie-up between Microsoft (Nasdaq: MSFT) and struggling smartphone maker Xiaomi, in a pairing that has interesting implications on many levels. At the biggest level, this alliance looks strikingly similar to an earlier one that ultimately saw Microsoft purchase the core smartphone business of former global leader Nokia. At another level, the alliance could give Xiaomi a powerful ally to help revive its fading fortunes, including a partner that could help it to move into the lucrative but difficult US market. Read Full Post…
Bottom line: New sales of Alibaba and Lenovo shares by big stakeholders partly reflect disappointment in each stock’s performance by the seller, as both companies face issues that could stunt their medium-term growth.
Big stakeholders sell Alibaba, Lenovo shares
The folks at e-commerce giant Alibaba (NYSE: BABA) and PC leader Lenovo (HKEx: 992) are licking their wounds today, after each was dumped by a major major shareholder. In the first case longtime backer SoftBank has just sold off a big chunk of its Alibaba holdings, raising a hefty $7.9 billion in the process. The second deal has Internet giant Google (Nasdaq: GOOG) looking to sell about $200 million worth of Lenovo stock. Alibaba and SoftBank are trying to put a positive spin on their development, but the bottom line is that both Alibaba and Lenovo stock have become disappointments recently for all investors. Read Full Post…
Bottom line: HNA’s Virgin Australia investment reflects its aspirations to build a global travel empire, while ICBC’s new European infrastructure fund reflects its attempts to be commercial while also supporting central government initiatives.
HNA invests in Virgin Australia
A couple of headlines are spotlighting the different approaches of 2 of China’s leading global investors, led by a big new investment in airline Virgin Australia (Sydney: VBA) by HNA Group. On the other side of the globe, ICBC (HKEx: 1398; Shanghai: 601398) is establishing a major new European infrastructure fund, in what looks like a far more politically-motivated move by China’s leading lender. Both investments reflect China’s growing role on the global investing stage, though each represents the rapidly diverging priorities between the state-run and private sectors. Read Full Post…
The following press releases and news reports about China companies were carried on June 2. To view a full article or story, click on the link next to the headline.
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Japan’s SoftBank Plans to Sell $7.9 Bln in Alibaba (NYSE: BABA) Stock to Cut Debt (English article)
Microsoft (Nasdaq: MSFT) Sells Patents to Xiaomi, Builds ‘Long-Term Partnership’ (English article)
Google (Nasdaq: GOOG) Seeking Up To $221 Mln by Selling Lenovo (HKEx: 992) Stock (English article)
Jaunt, SMG and CMC Launch Virtual Reality Venture Jaunt China (Businesswire)
Michael Kors Acquires Greater China Licensee for $500 Mln (Businesswire)
Bottom line: A Beijing visit by Microsoft CEO Satya Nadella hints that a settlement will soon be announced in the 3-year-old anti-trust probe against the company, which could include a fine of more than $1 billion.
Microsoft’s Nadella back in China
Just weeks after Apple (Nasdaq: AAPL) CEO Tim Cook came to China on a trip partly aimed at damage control, Microsoft’s (NYSE: MSFT) CEO Satya Nadella is in Beijing on a similar mission involving a long-running anti-trust probe against the world’s biggest software company. The trip, and the fact that it was probably leaked by Microsoft, hints that the nearly 3-year-old probe against the company is nearing completion and we could soon see China announce corrective action against the company. A similar series of events unfolded before last year’s anti-trust settlement of a similarly long Beijing probe against US telecoms chip giant Qualcomm (Nasdaq: QCOM). Read Full Post…
The following press releases and news reports about China companies were carried on June 1. To view a full article or story, click on the link next to the headline.
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Microsoft (Nasdaq: MSFT) CEO Visiting China as Anti-Trust Probe Nears 3rd Year (English article)
Snow White Spotted at Wanda City Triggers Backlash From Disney (NYSE: DIS) (English article)
ICBC (HKEx: 1398) Setting up $1.1 Bln Europe Fund to Tap New Overseas Markets (English article)
Dangdang (NYSE: DANG) Enters into Merger Agreement for Going Private (PRNewswire)
HNA Invests 750 Mln Yuan in Virgin Australia (Sydney: VBA) (Chinese article)
The following press releases and news reports about China companies were carried on May 31. To view a full article or story, click on the link next to the headline.
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Wanda Group Offers Record $4.4 Bln Price to Privatize Property Unit (English article)
Chinese Bidders Vie for ING Life in Record South Korea Insurance M&A: Sources (English article)
Yongli Film And TV Eyes Backdoor Listing Using Hongda Materials (Shenzhen: 002211) (Chinese article)
Kuka (Frankfurt: KU2) Should Remain in Europe Investor Hands, EU’s Oettinger Says (English article)
