A Chinese group has failed in its bid to buy a top global aircraft leasing firm for the second time in 2 years, with word of the collapse of talks by domestic aviation giant AVIC and Chinese sovereign wealth fund CIC to purchase Europe’s Avolon. This second case follows another failed bid by a lesser-known group to buy US giant ILFC last year, and shows that Chinese firms still have a bit to learn when doing this kind of M&A. Some politics may also have been at play in this latest case, since AVIC is also designing a new large commercial aircraft that it hopes will someday compete in a lucrative market now dominated by Boeing (NYSE: BA) and Airbus (Paris: AIR). 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)
After a failed bid at buying the world’s largest aircraft leasing company last year, China appears to be gearing up for a second attempt to enter the lucrative space with plans to bid for European giant Avolon. In this instance, the report is coming from a major Chinese newspaper that says China Investment Corp is teaming up with Aviation Industry Corp of China (AVIC) in the bid, which could be worth some 12 billion euros ($16 billion). That would easily make it the largest global acquisition by a Chinese firm outside the resource sector, reflecting the country’s growing financial might as many European firms continue to struggle with after-effects of the continent’s debt crisis of several years ago. Read Full Post…
China’s plan to add up to 35 gigawatts of new solar power capacity by 2015 may be getting off to a slow start, but the nation looks quite happy to fund new plants in other countries to help its struggling solar panel makers. That’s my initial assessment, following reports that state-run giant Aviation Industry Corp of China (AVIC) plans to build up solar power plants with up to 300 megawatts of capacity in Britain.
It’s interesting that AVIC has chosen the UK for its solar experiment, since Beijing is pressuring such big state-owned firms to construct new solar plants at home to boost local panel makers and reduce pollution from conventional power sources. But it’s also not a complete surprise that AVIC is making this kind of move, for reasons I’ll explain shortly. The bottom line could be good news for China’s struggling solar panel makers, though I suspect AVIC will also come under pressure to buy some of the solar panels for these new plants from western manufacturers as well. Read Full Post…
