Chinese appetite for foreign food companies looks set to accelerate this year, with word that steamed bun giant Goubuli is nearing a deal to buy a major US coffee chain. The deal would mark the extension of a recent buying binge by Chinese food makers of overseas assets, including Shuanghui’s landmark $4.7 billion purchase of US pork products giant Smithfield last year. This latest deal is slightly different from the earlier ones because it involves a restaurant chain rather than a consumer products company, hinting at a new direction for China’s recent food-buying frenzy. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 23. To view a full article or story, click on the link next to the headline.
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China Telecom (HKEx: 728) To Save 3.14 Bln Yuan After Cut In Fees (English article)
Chinese firms’ addiction to distressed global assets was back in the spotlight last week with word that car maker Dongfeng Motor (HKEx: 489) is nearing a deal to purchase struggling French automaker Peugeot (Paris: PEUP). This pursuit of a global brand is consistent with Beijing’s call for Chinese firms to go global, and would certainly allow Dongfeng to quickly expand onto the world stage. Read Full Post…
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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Smithfield Owner Shuanghui Hires Banks For Up To $6 Bln HK IPO (English article)
Suntech (NYSE: STP) Files Application For Provisional Liquidation (PRNewswire)
Alibaba Won’t Seek Banking License For Now – Microlending CEO (Chinese article)
Canada Govt Blocks Lenovo (HKEx: 992) From BlackBerry Bid Over Security – Report (Chinese article)
I have to commend the Obama administration for approving the sale of leading US pork processor Smithfield (NYSE: SFD) to China’s Shuanghui, rather than succumbing to pressure from US politicians who opposed the deal. Washington regulators who were reviewing the deal for national security issues quietly approved the sale just before the weekend, providing a nice gift for Shuanghui for the upcoming Mid-Autumn and Chinese National Day holidays. (English article) But more importantly, approval of the deal sends an important message that the US wants to promote fair and free trade with China, and won’t play the kinds of political tit-for-tat games that often happen during trade disputes. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 7-9. To view a full article or story, click on the link next to the headline.
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US Clears Smithfield’s (NYSE: SFD) Acquisition By China’s Shuanghui (English article)
China Telecom (HKEx: 782) Kicks Off 4G Equipment Tender – Source (English article)
US Prosecutors Add China Bribe Allegations To GSK (London: GSK) Probe (English article)
China Factory Fire Sends Memory Chip Prices To 3-Year High (English article)
PetroChina (HKEx: 857) Receives Notice Of US Class Action Lawsuit (HKEx announcement)
The following press releases and media reports about Chinese companies were carried on September 6. To view a full article or story, click on the link next to the headline.
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China Probes Against Foreign Pharma Unfair: EU Business Lobby (English article)
Xiaomi Launches New Mi3 Smartphone, To Sell For 1,999 Yuan (Chinese article)
Alibaba to Invest in Sina (Nasdaq: SINA) Video Business – Source (English article)
US Unlikely To Block Shuanghui Purchase of Smithfield (NYSE: SFD) (English article)
Qihoo 360 (NYSE: QIHU) Closes Offering of $600 Mln of Convertible Notes (PRNewswire)
Two major acquisitions of western food firms by Chinese buyers are in the news today, with more bad signs for Shuanghui’s pending purchase of pork maker Smithfield (NSYE: SFD), and word that Shanghai-based Bright Food is seeking a large deal in Israel. Perhaps I’m being a bit pessimistic, but I see both of these deals ultimately failing due to the increasingly sensitive nature of cross-border food acquisitions. Western governments seem prepared to let Chinese firms purchase locally-based makers of individual food products, such as wines or cookies. But those same governments will be far more wary about purchases lower down in their food chains, which have the potential to affect much larger segments of broader food supplies. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 4. To view a full article or story, click on the link next to the headline.
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China’s Bright Food In Talks To Buy Israeli Food Group Tnuva (English article)
The following press releases and media reports about Chinese companies were carried on July 27-29. To view a full article or story, click on the link next to the headline.
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Activision (Nasdaq: ATVI) Goes Solo In $8.2 Bln Deal, Tencent (HKEX: 700) Invests (English article)
EU, China Resolve Solar Dispute – Their Biggest Trade Row By Far (English article)
US Extends Review Of Shuanghui, Smithfield (NYSE: SFD) Merger (English article)
Wanda Orders Up to 120 New Imax Theaters for China （English article)
TMall Daily Mobile Gross Merchandise Value Exceeds 100 Mln Yuan (English article)
The controversial deal by China’s Shuanghui to purchase leading US pork products maker Smithfield (NYSE: SFD) is taking a new twist, with word that the former may attempt a Hong Kong IPO if and when it completes the purchase. Such a share offering looks quite smart, as it would allow investors to tap China’s huge appetite for pork. It would also allow them to buy into a major company whose size and foreign connections could reassure skeptical Chinese consumers jaded by a never-ending series of food scandals. But all that said, I have serious doubts about whether the deal will close due to building resistance in the US. Read Full Post…
