The following press releases and media reports about Chinese companies were carried on February 20-22. To view a full article or story, click on the link next to the headline.
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China Tops Foreign Buyers Drawing US M&A Security Reviews (English article)
The following press releases and media reports about Chinese companies were carried on February 19. To view a full article or story, click on the link next to the headline.
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Major Banks in Rush to Support Apple Pay (Nasdaq: AAPL) After China Launch (Chinese article)
Uber Losing $1 Bln a Year to Compete in China (English article)
Xiaomi to Release Consumer Drone – Reports (English article)
Average Huawei Smartphone Price in China Rose in 2015 to $213, As Others Fall (Chinese article)
Bottom line: A new integrated car-ordering platform being rolled out by Lyft and Didi looks like a smart and low-cost move to expand their geographic reach, while LeEco’s electric car venture with Aston Martin is likely to sputter.
Lyft co-founder John Zimmer in Beijing for Didi announcement
Two of China’s top Internet companies are in car-related headlines today, led by a rapidly cozying relationship between Didi Kuaidi and US counterpart Lyft that has the pair preparing to roll out a joint platform for their signature hired car services. The other news has online video giant LeEco (Shenzhen: 300104), formerly known as LeTV, rolling out a joint venture to make electric cars with super luxury brand Aston Martin.
Both of these deals are incremental, since the original Didi-Lyft partnership was formed last year when the former invested in the latter. Likewise, LeEco was rumored to be near a tie-up with Aston Martin as early as last April. From a broader perspective, both moves show a growing confluence between the Internet and cars, which has opened up a wide range of new services that often incorporate GPS technology. Read Full Post…
Bottom line: National security concerns are likely to torpedo pending sales of crane maker Terex and the Chicago Stock Exchange to Chinese buyers, while a similar sale of Ingram Micro shouldn’t draw as much scrutiny.
Terex, Chicago Stock Exchange sales draw national security concerns
Just a day after chip maker Fairchild (NYSE: FCS) called off talks to be purchased by a Chinese buyer over concerns that Washington would veto the deal, 2 other similar planned acquisitions of US firms are coming under the microscope. In the more ominous of the new developments, a group of 46 US congressmen have expressed reservations about a deal announced last week that would see a little-known Chinese company buy the Chicago Stock Exchange.
The other development has a single US congressman expressing similar reservations about a deal that would see Chinese construction equipment maker Zoomlion (HKEx: 1157) buy US crane maker Terex (NYSE: TEX). At the same time, yet another major deal that could draw similar national security scrutiny is in the headlines, with word that a company connected to private equity investor HNA Group has offered to pay $6 billion for computer and component distributor Ingram Micro (NYSE: IM). Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 18. To view a full article or story, click on the link next to the headline.
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China’s Zoomlion (HKEx: 1157) Bids for Terex, Stokes US National Security Fears (English article)
Marriott (NYSE: MAR) Enters China Mid-Range Hotels, Targets 100 Fairfield Hotels by 2021 (Chinese article)
Ingram Micro (NYSE: IM) to Be Bought by Tianjin Tianhai for $6 Bln (English article)
Jumei (NYSE: JMEI) Announces Receipt of Going Private Proposal (PRNewswire)
Didi, Lyft to Launch Joint Car-Ordering Platform Within 3 Months – Lyft CEO (Chinese article)
Bottom line: Fairchild’s decision to halt talks to be acquired by a Chinese group reflect mounting US national security concerns over cross-border M&A from China, which are likely to remain high until after this year’s presidential election.
Fairchild calls off talks with Chinese buyer
The Year of the Monkey is shaping up as a busy time for Washington officials reviewing China-US deals for national security concerns, with word that such concerns have killed a bid for Fairchild Semiconductor (NYSE: FCS) by a Chinese buyer. In this instance, it was Fairchild itself that decided to terminate the discussions with a group led by a unit of Chinese conglomerate China Resources, citing worries that such a deal would get vetoed by Washington.
Fairchild’s decision marks the latest case in a recent rise of US-China deals thrown into doubt over national security concerns, which has its roots in several factors. Several of the killed deals have come in the high-tech semiconductor chip sector, which is now in the process of global consolidation. Adding to the pressure are an increasingly aggressive group of cash-rich Chinese global buyers looking to expand beyond their traditional realms of natural resources and other low-end products. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 17. To view a full article or story, click on the link next to the headline.
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Fairchild (NYSE: FCS) Rejects Chinese Offer on US Regulatory Fears (English article)
Wanda to Team with Korea’s E-Land on Overseas Travel Services (Chinese article)
Canadian Solar (Nasdaq: CSIQ) Says Q4 and Full Year Results to Exceed Prior Guidance (PRNewswire)
Xinhua Criticizes WeChat’s New Fees for Cash Transferring Service (Chinese article)
China New Energy Car Output for January Drops Sharply Month-on-Month (Chinese article)
Bottom line: Washington should seriously consider a ground-breaking plan that would sell the Chicago Stock Exchange to a Chinese buyer, potentially including conditional approval to allay national security concerns.
Chinese buyer bids for Chicago Stock Exchange
China’s outbound M&A passed a new milestone last week when a Chinese investor group announced plans to buy the Chicago Stock Exchange, with an aim to repositioning it as a US listing ground for Chinese companies. The move would mark the first purchase of a US stock exchange by a Chinese buyer, even though the Chicago Stock Exchange is a tiny player compared to the 2 main US boards in New York.
But recent concerns that have threatened several other similar cross-border purchases could come into play, as Washington may worry about opening the nation’s vital capital markets to Chinese ownership. Beijing could also express concerns, since the buyer is a real estate company with little or no experience with financial markets. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 10-15. To view a full article or story, click on the link next to the headline.
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Baidu (Nasdaq: BIDU) Receives Offer to Acquire Qiyi.com (PRNewswire)
Alibaba (NYSE: BABA) Gets New Learning Opportunity With 5.6 Pct Stake in Groupon (English article)
Chinese Investor Group to Buy Chicago Stock Exchange (English article)
Amazon (Nasdaq: AMZN) Expands Logistics Reach in China (English article)
Opera (Oslo: OPERA) to Be Sold to Chinese Tech Companies for $1.2 Bln (English article)
The following press releases and media reports about Chinese companies were carried on February 5. To view a full article or story, click on the link next to the headline.
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The following press releases and media reports about Chinese companies were carried on February 4. To view a full article or story, click on the link next to the headline.
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