Bottom line: US national security regulators are likely to approve the potential purchase of Micron by China’s Tsinghua Unigroup, to demonstrate their commitment to fair trade and avoid politicizing cross-border high-tech M&A.
Micron sale likely to get US approval
In the days after reports emerged that China’s Tsinghua Unigroup was planning a bid for US memory chip giant Micron (NYSE: MU), media have been buzzing with speculation over whether Washington might veto a deal on national security grounds. I can understand the logic from both views, and some say recent US allegations of frequent hacking attacks from China could add to arguments for a veto of the deal.
But as a longtime watcher of this kind of transaction, I expect that Washington will ultimately approve the purchase to demonstrate its commitment to fair trade. Such a move would also send a strong signal to Beijing, which is showing growing signs of limiting sales by foreign technology companies in China with its recent introduction of a sweeping new national security law. Read Full Post…
Bottom line: China’s Ninebot most likely purchased Segway for less than $100 million to get its technology, and could make a New York IPO by 2017 that will value the firm at $2-$5 billion.
Ninebot buys Segway
If you can’t beat ’em, then buy ’em. That seems to be the philosophy at a Chinese firm called Ninebot, which has just announced it has purchased US rival Segway, maker of a trendy type of 2 wheel, stand up vehicle used to travel short distances. The pair of companies previously had a stormy relationship, as Segway had accused Ninebot of intellectual property theft. So this new purchase should formally end the copycat allegations. Read Full Post…
Let’s end the week with a couple of new energy developments, led by word that China and the European Union could be heading for a new showdown after the pair narrowly avoided a trade war last year over dumping accusations towards Chinese solar panels. The news looks quite disappointing and bodes poorly for the broader solar sector, where protectionist forces have been rapidly building in the last few months. On a more positive note, Chinese auto parts maker Wanxiang has just announced a new battery joint venture with Japan’s NEC (Tokyo: 6701), which looks full of potential to help solve one of the biggest problems for clean energy producers. Read Full Post…
New reports that major car maker Dongfeng Motor (HKEx: 489) is bidding to buy a struggling US hybrid car maker are casting a spotlight on China’s emerging role as scavenger for global new energy companies struggling to stay in business. A number of factors are driving this budding trend, led by the fact that many of these Chinese suitors are relatively cash rich and in a good position to provide much-needed funds for cash-starved western new energy firms.
The following press releases and media reports about Chinese companies were carried on January 30. To view a full article or story, click on the link next to the headline. ══════════════════════════════════════════════════════
Chinese Firm Wins Bankrupt A123 Despite US Tech Transfer Fears (English article)
Suning.com (Shenzhen: 002024) To Adjust Structure After Chinese New Year (Chinese article)
China’s 2012 Group Buy Transaction Value Grows 61 Pct in 2012 (English article)
People.cn (Shanghai: 603000) Says 2012 Profit Up More Than 50 Pct (Chinese article)
New Oriental (NYSE: EDU) Announces Results For Quarter Ended Nov 30 (PRNewswire)
Fresh on the heels of a victory in its bid to buy Canadian energy exploration firm Nexen (Toronto: NXY), China is preparing to test its luck once again with another sensitive attempt to buy one of the largest US aircraft leasing companies from insurance giant AIG (NYSE: AIG). I previously predicted the Canadian government would ultimately approve the purchase of Nexen from state-run Chinese oil major CNOOC (HKEx: 883; NYSE: CEO), which the government of Prime Minister Stephen Harper finally did just before the weekend after months of foot dragging. But a separate group of state-backed buyers that includes China’s biggest bank ICBC (HKEx: 1398; Shanghai: 601398) should look closely at the fine print in final Nexen verdict, which could presage a bumpy flight path ahead in their surprise $5.5 billion bid for ILFC, the aircraft leasing arm of AIG.
The following press releases and media reports about Chinese companies were carried on December 4. To view a full article or story, click on the link next to the headline. ══════════════════════════════════════════════════════
Ernst & Young to Pay $117.6 Million to Settle Sino-Forest Shareholder Suit (English article)
Strategic Materials Advisory Council Lauds A123 Sale Congressional Opposition (Businesswire)
CNZZ: Baidu (Nasdaq: BIDU) Search Traffic Share Down Slightly in November (English article)
LDK Solar (NYSE: LDK) Reports Financial Results for Q3 of Fiscal 2012 (PRNewswire)
China’s Wanda In Talks With “Well-Known” Hotels For US Buys (English article)
The following press releases and media reports about Chinese companies were carried on December 1. To view a full article or story, click on the link next to the headline. ══════════════════════════════════════════════════════
Apple’s (Nasdaq: AAPL) iPad mini & iPhone 5 Arrive in China in December (Businesswire)
Yum (NYSE: YUM) Warns Of China Q4 Sales Drop As Macro-Economy Bites (English article)
China Approves Wanxiang Plan To Buy US Battery Maker A123 (English article)
New reports that major car maker Dongfeng Motor (HKEx: 489) is bidding to buy a struggling US hybrid car maker are casting a spotlight on China’s emerging role as scavenger for global new energy companies struggling to stay in business. A number of factors are driving this budding trend, led by the fact that many of these Chinese suitors are relatively cash rich and in a good position to provide much-needed funds for cash-starved western new energy firms.
Fresh on the heels of a victory in its bid to buy Canadian energy exploration firm Nexen (Toronto: NXY), China is preparing to test its luck once again with another sensitive attempt to buy one of the largest US aircraft leasing companies from insurance giant AIG (NYSE: AIG). I previously predicted the Canadian government would ultimately approve the purchase of Nexen from state-run Chinese oil major CNOOC (HKEx: 883; NYSE: CEO), which the government of Prime Minister Stephen Harper finally did just before the weekend after months of foot dragging. But a separate group of state-backed buyers that includes China’s biggest bank ICBC (HKEx: 1398; Shanghai: 601398) should look closely at the fine print in final Nexen verdict, which could presage a bumpy flight path ahead in their surprise $5.5 billion bid for ILFC, the aircraft leasing arm of AIG.
