Bottom line: Fosun should drop out of the bidding war for Club Med to avoid overpaying for the resort operator, despite big potential from a possible Asia expansion.
Fosun in bidding war for Club Med
Chinese investors aren’t the only companies with big money to spend on global M&A for undervalued western assets. That’s the lesson that high-flying private equity firm Fosun International (HKEx: 656) is quickly learning, as it gets sucked into a bidding war for French holiday resort operator Club Med (Paris: CU). This particular bidding war is one of the first I’ve seen for a major western asset involving Chinese bidders, and could presage more competition from local western investors who want to take advantage of the many assets now now being sold at bargain prices. Read Full Post…
Bottom line: The record-breaking purchase of an Australian trophy hotel by a China buyer is part of a growing Chinese foreign real estate buying binge, which could ultimately produce a global bubble.
Chinese insurer buys Sydney Sheraton
China’s nascent but rapidly growing appetite for foreign hotels continues to grow, with word that another previously unknown Chinese insurer has snapped up a trophy property in Australia for a record price. In this case it’s China’s Sunshine Insurance Group that’s buying a major Sheraton property in Sydney from global giant Starwood Hotels (NYSE: HOT) for an inflated price of A$463 million, or about $400 million. This sale is the third of a major western hotel asset to a Chinese buyer in just the last 2 months, and looks a lot like similar waves from the past 30 years that saw Asian buyers purchase trophy western real estate at inflated prices. Read Full Post…
After spending most of its life in relative obscurity, Chinese insurer Anbang is suddenly making steady headlines on the global stage with word of 2 major new deals in Europe and Asia, following its landmark agreement last week to buy New York’s storied Waldorf Astoria hotel for nearly $2 billion. The larger of the latest deals has Anbang in talks to buy a major stake in South Korea’s Woori Bank, while the smaller has it buying Belgian insurer Fidea. Meantime, Anbang’s earlier landmark Waldorf deal is showing early trouble signs, with word that some US diplomats are expressing concerns about the sale over the potential for spying. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 15. To view a full article or story, click on the link next to the headline.
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Anbang Insurance Deal For Waldorf Astoria Raises US Security Fears (English article)
EU, China Have Resolved Telecoms Dispute: EU Trade Chief (English article)
Xiaomi Signs Former Google (Nasdaq: GOOG) Exec As India Products Manager (English article)
Costco (Nasdaq: COST) Makes China Debut On Alibaba’s (NYSE: BABA) Tmall Platform (Businesswire)
China’s Gingko Tree Said In Talks To Buy Siemens (Frankfurt: SIEGn) Offices (English article)
Two major new global investments are highlighting a recent trend that has Chinese buyers moving beyond their traditional comfort zones of resources and manufacturing and into other less familiar areas like real estate and sports clubs. The first case will see domestic insurance company Anbang Insurance buy New York’s landmark Waldorf Astoria hotel for a supercharged price of nearly $2 billion. The second deal has media reporting that Wang Jianlin, founder of real estate giant Wanda Group, is preparing to buy a stake in Spanish soccer club Atletico de Madrid. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 8. To view a full article or story, click on the link next to the headline.
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China’s CIC, AVIC End Talks To Acquire Aircraft Leaser Avolon: Sources (English article)
Hilton (NYSE: HLT) Sells NY’s Waldorf Astoria to Anbang Insurance For $1.95 Bln (Businesswire)
Canadian Solar (Nasdaq: CSIQ) Gives Update On Japanese Utility-Scale Pipeline (PRNewswire)
Qihoo 360 (NYSE: QIHU) Announces $200 Mln Share Repurchase Plan (PRNewswire)
The Rent-A-Car Of China: eHi Car Services Files For $100 Mln US IPO (English article)
