In writing this blog, I generally try to keep my own views muted and focus instead on the latest news and what it means for the companies involved. But I’m making one of my occasional exceptions to that rule today to say that the US really should go ahead and approve the sale of bankrupt battery maker A123 Systems to a Chinese company, since this deal seems to have few if any national security implications and blocking it would send a bad signal about Washington’s commitment to fair trade.
Tag Archives: Nexen
Canada OKs CNOOC Buy, AIG Tests US 中海油竞购尼克森获批
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.
China Tries New Resource M&A Approach 中国转变全球资源并购策略
New reports from Down Under are saying that China’s leading power distributor State Grid Corp has made a major purchase in Australia, a move that initially looks controversial but could actually mark the start of a smarter approach by Chinese firms to global M&A in the sensitive resource and energy sectors. State Grid, which has been on a global buying spree over the last year, has announced it is acquiring 41 percent of ElectraNet, a grid operator in the Australian state of Queensland, from a local government entity. (English article) No value of the purchase was given, but Australian media had previously reported that State Grid would pay A$500 million for the stake, equal to about $523 million.
News Digest: November 29 报摘： 2012年11月29日
The following press releases and media reports about Chinese companies were carried on November 29. To view a full article or story, click on the link next to the headline.
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- CNOOC (HKEx: 883), Nexen (Toronto: NXY) Reapply For US Deal Approval (English article)
- Yingli (NYSE: YGE) Announces Largest Module Supply Contract in Company History (PRNewswire)
- Vancl Reduces Workforce Ahead of IPO (English article)
- Jingdong Mall Obtains 5 Bln Yuan in Credit for Supplier Financing (English article)
- Shanda Cloudary Aims For April 2013 IPO, Hires Merrill As Underwriter (Chinese article)
M&A: CNOOC Yields, AgBank Insures 中海油为收购尼克森再让步 农行收购嘉禾人寿股份获批
I’ll start the day with a look at news on 2 M&A deals, one domestic and one international, that show how difficult such transactions still are for Chinese firms. The first involves what looks like a big step forward in oil major CNOOC’s (HKEx: 883; NYSE: CEO) bid for Canadian rival Nexen (Toronto: NXY), which is controversial only because of its political overtones. The second involves Agricultural Bank of China’s (HKEx: 1288; Shanghai: 601288) receipt of regulatory approval to buy a controlling stake of an insurance company named Jiahe, though in this case what’s most interesting is the long amount of time it took to win the approval.
News Digest: November 21 报摘： 2012年11月21日
The following press releases and media reports about Chinese companies were carried on November 21. To view a full article or story, click on the link next to the headline.
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- China Mobile (HKEx: 941) to Buy Fetion from Ultrapower (Shenzhen: 300002) – Source (English article)
- CNOOC (HKEx: 883) Accepts New Canadian Terms to Win Nexen Deal Nod: Report (English article)
- Agricultural Bank of China (HKEx: 1288) Approved For Jiahe Insurance Investment (HKEx announcement)
- Phoenix New Media (NYSE: FENG) Reports Q3 Unaudited Financial Results (PRNewswire)
- Toys“R”Us Launches Dedicated Web Store in China (Businesswire)
News Digest: November 7 报摘： 2012年11月7日
The following press releases and media reports about Chinese companies were carried on November 7. To view a full article or story, click on the link next to the headline.
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- Yihaodian Makes Executive Adjustments As Walmart (NYSE: WMT) Team Enters (Chinese article)
- Legislator in Canada’s Ruling Party Blasts CNOOC (HKEx: 883) Bid for Nexen (English article)
- HiSoft (Nasdaq: HSFT), VanceInfo (NYSE: VIT) Shareholders Approve Merger (PRNewswire)
- Dow (NYSE: DOW) Opens Photovoltaics Films Application Lab in Shanghai (Businesswire)
- LDK Solar (NYSE: LDK) and Sumitomo Agree To Terminate Contract (PRNewswire)
- Latest calendar for Q3 earnings reports (Earnings calendar)
News Digest: November 1 报摘： 2012年11月1日
The following press releases and media reports about Chinese companies were carried on November 1. To view a full article or story, click on the link next to the headline.
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- eBay (Nasdaq: EBAY) to Re-enter China B2C Market With Xiu.com – Source (Chinese article)
- New Extension Likely For CNOOC (HKEx: 883) Nexen (Toronto: NXY) Review – Sources (English article)
- HiSoft (Nasdaq: HSFT) Reaffirms Q3 and Full Year 2012 Guidance (PRNewswire)
- Jingdong Mall, LeTV (Shenzhen: 300104) Partner on Video Shopping (English article)
- Sohu (Nasdaq: SOHU) Video CEO Denies Timetable For IPO (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Deals: Hawker Sputters, PetroChina in Canada 交易：豪客比奇收购案失败，中石油建设加拿大基础设施
A couple of major overseas moves are in the headlines today, spotlighting the fact that Chinese firms are becoming increasingly adept at relatively simple resource deals, even as they still lack sophistication to do M&A in other, more complex sectors. In the former category, oil major PetroChina (HKEx: 857; Shanghai: 601857; NYSE: PTR) has reached a deal to co-develop a $3 billion oil pipeline in Canada with a local partner, in the largest project of its kind by a Chinese firm to date. In the latter, a white-knight rescue bid by a relatively obscure Chinese firm for bankrupt plane maker Hawker Beechcraft has collapsed, leaving the US company no choice but to work out a reorganization plan with its creditors.
CNOOC-Nexen: Waiting for Signs From Beijing 中海油收购尼克森：等待中国政府的信号
Oil major CNOOC (HKEx: 883; NYSE: CEO) has just released its latest quarter results that look generally upbeat, but media have predictably focused instead on the company’s pending $15 billion bid for Nexen (Toronto: NXY) which is still awaiting approval by the Canadian government. Since everyone else is guessing on whether Ottawa will ultimately approve this deal, I’ll go ahead and add my name to the list and predict the deal will get approved when Canada announces its decision next month. But there’s one caveat to my prediction, namely that Beijing will need to give some kind of signal — the more openly, the better — that it is willing to give Canadian companies similar access to the Chinese market where state-run firms currently dominate the resources sector.
News Digest: October 24 报摘： 2012年10月24日
The following press releases and media reports about Chinese companies were carried on October 24. To view a full article or story, click on the link next to the headline.
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- Nexen (Toronto: NXY) Sale Said to Turn on China Backing Canada Deals (English article)
- Suntech (NYSE: STP) Refuses Conditions for Government Assistance (Chinese article)
- NetEase (Nasdaq: NTES) Portal Editor-in-Chief Joins Baidu (Nasdaq: BIDU) – Source (English article)
- TAL Education (NYSE: XRS) Announces Fiscal Q2 Results, Declares Dividend (PRNewswire)
- Ironwood, AstraZeneca (London: AZN) Announce Linaclotide Collaboration for China (Businesswire)
- Latest calendar for Q3 earnings reports (Earnings calendar)
