The following press releases and news reports about China companies were carried on August 13-15. To view a full article or story, click on the link next to the headline.
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China Film (Shanghai: 600977) Jumps 91 Pct in 1st Week After Record Entertainment IPO (English article)
McDonald’s (NYSE: MCD) to Stop Using Antibiotic Food in US, No Word on China (Chinese article)
E-House (NYSE: EJ) Announces Completion of Merger (PRNewswire)
China Mobile (HKEx: 941) to Eliminate Domestic Roaming Fees by Year End (Chinese article)
AC Milan’s Chinese Buyers Name Club’s Future CEO (English article)
The following press releases and news reports about China companies were carried on August 11. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Announces June Quarter 2016 Results (Businesswire)
Yihaodian Launches 1 Bln Yuan Price War Against Tmall Supermarket (Chinese article)
The following press releases and news reports about China companies were carried on August 11. To view a full article or story, click on the link next to the headline.
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LeEco (Shenzhen: 300104) Invests 20 Bln Yuan on Zhejiang Car Factory (Chinese article)
Bottom line: China’s anti-trust regulator is moving cautiously in approving the Marriott-Starwood merger because it involves 2 major global brands with a big presence in the high end of the market, but will ultimately approve the deal.
China extends anti-trust review for Marriott-Starwood merger
China is once again creating problems for an offshore M&A deal that would create the world’s largest hotel company, with word that it’s extending an anti-trust review period for the landmark merger of US hotel giants Marriott (NYSE: MAR) and Starwood (NYSE: HOT). Industry watchers got some brief entertainment earlier this year when Chinese insurer Anbang sparked a bidding war with its surprising offer for Starwood, operator of the Sheraton and Westin brands that had already agreed to be acquired by Marriott. Anbang later dropped that bid, but now more delays are coming from China, where the anti-trust regulator says it needs more time to review the deal. Read Full Post…
The following press releases and news reports about China companies were carried on August 10. To view a full article or story, click on the link next to the headline.
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HTC (Taipei: 2498), Alicloud Form Strategic Alliance in Virtual Reality (Chinese article)
Sina (Nasdaq: SINA) Reports Q2 Financial Results (PRNewswire)
China Extends Marriott-Starwood Deal Review by Up to 60 Days (English article)
BP (London: BP) Seeks Buyers for Its Half of China Petrochemical JV (English article)
China Film (Shanghai: 600977) Rises 44 Pct in Shanghai Trading Debut (Chinese article)
Bottom line: China’s anti-trust regulator’s assertion that the Didi-Uber China mega-merger will require its approval could mark the beginning of a new, tougher stance towards the nation’s rapidly consolidating Internet sector.
Anti-trust regulator steps into Didi-Uber marriage
After years of sitting by and doing almost nothing to stop the formation of near monopolies in a number of emerging high-tech sectors, China’s anti-trust regulator may finally be taking notice of rapid consolidation happening in the country’s cyber realm. I’ve frequently complained that China’s commerce ministry has taken a relatively tough position on cross-border M&A for anti-competitive reviews, but pays little or no attention to similar domestic deals that could have similar effects for local consumers. But perhaps that may finally be changing, with word that the Ministry of Commerce is saying its blessing will be necessary for the newly announced mega-marriage between private car services giants Didi Chuxing and the China unit of global leader Uber. Read Full Post…
The following press releases and news reports about China companies were carried on August 5. To view a full article or story, click on the link next to the headline.
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Massive Funding, Apple (Nasdaq: AAPL) Backing Helped Didi Outrun Uber in China (English article)
China Starts to Lose Its Taste for McDonald’s (NYSE: MCD) and KFC (NYSE: YUM) (English article)
Tablet PC Sales Fall in Q2, But Lenovo (HKEx: 992), Huawei Post Gains (Chinese article)
Bitauto (NYSE: BITA) Consortium Invests $550 Mln in Yixin Capital (PRNewswire)
Online Children’s English Learning Platform Vipkid Wins $100 Mln Series C Funding (English article)
Bottom line: Qualcomm’s new licensing deal with Oppo extends a recent upbeat trend for the company in China after a yearlong retrenchment, and will be followed by more similar deals through the rest of this year.
Qualcomm in licensing deal with Oppo
Following a difficult year in China that saw it fined a record amount for anti-competitive behavior, global telecoms chip leader Qualcomm (Nasdaq: QCOM) appears to be slowing regaining its footing in the world’s largest smartphone market. That’s my interpretation of the latest headline, which has the company announcing a new chip licensing deal with Oppo, one of the market’s fastest growing smartphone makers. Word of this latest deal almost certainly came from Qualcomm itself, which is eager to show its days of trouble in China are in the past. Read Full Post…
The following press releases and news reports about China companies were carried on August 3. To view a full article or story, click on the link next to the headline.
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China Regulator Says Didi, Uber Deal Will Need Mofcom Approval (English article)
Sanyuan Foods Gives Up Preferential Rights to Buy Beijing McDonald’s (NYSE: MCD) JV (Chinese article)
Trina Solar (NYSE: TSL) Enters into Agreement for Going Private Transaction (PRNewswire)
Baidu (Nasdaq: BIDU), Tencent (HKEx: 700) May Cut Wanda E-Commerce Ties (Chinese article)
Cheetah Mobile (NYSE: CMCM) Buys Global News Aggregation App ‘News Republic‘ (English article)
Bottom line: Didi’s merger with Uber China was driven by investor pressure to end their fierce price wars, and the newly combined company is likely to quickly reduce its subsidies and become profitable by year-end.
Didi Chuxing merges with Uber China
Just a week after reports emerged of a truce in the nonstop price wars between private car specialists Didi Chuxing and Uber China, the pair have suddenly announced a merger that will become the latest marriage of former bitter rivals in China. This latest shotgun union, which will put Didi Chuxing in the driver’s seat of the newly combined company, testifies to growing investor impatience at fierce price wars and resulting heavy losses that have become the norm in many emerging Chinese high-tech industries. Read Full Post…
Bottom line: Fosun’s newest acquisitions indicate it could soon become more active in the asset management and drug sectors outside China, with a focus on emerging markets like the BRICS countries.
Fosun buys India’s Gland Pharma
Private equity giant Fosun (HKEx: 656) is in 2 separate M&A headlines in the BRICS nations of Brazil and India, purchasing an asset manager in the former and a drug maker in the latter. Pharmaceuticals and real estate have been 2 of Fosun’s focus areas in its shopping spree both at home and abroad, though the move into developing markets is relatively new.
Fosun has more traditionally focused its global buying on western markets in the US and Europe. So this latest pair of deals could signal a new focus on emerging markets, especially ones like Brazil and Russia where recent economic malaise could be pressuring some debt-laden companies to sell off assets at bargain prices to raise cash. Read Full Post…
