Just a week after Canada approved the $15 billion purchase of oil exploration firm Nexen (Toronto: NXY) to Chinese rival CNOOC (HKEx: 883; NYSE: CEO), we’re seeing a couple of interesting new M&A deals in the energy sector, one involving policy lender China Development Bank and the other from Hong Kong-listed China Gas (HKEx: 384). The common theme is that many Chinese energy investors are relatively flush with cash right now, and are looking for bargains in a global sector where asset prices have become depressed due to lingering effects of the global downturn. But that said, these 2 deals are both quite different, with the first most likely being driven at least partly by Beijing while the latter looks like a more traditional private sector deal.
Tag Archives: Sinopec
Amazon Turns Up China Press With Kindle 亚马逊在华上线Kindle电子书店
Media are buzzing with the latest news on Amazon (Nasdaq: AMZN) in China, which is turning up the heat in the country’s overheated e-commerce space with the opening of a store on its Chinese site selling electronic books for its Kindle tablet PCs. (English article; Chinese article) Since Kindle products are not yet available in China, the site also offers free software that allows consumers to read Kindle-formatted books using other devices, including Apple (Nasdaq: AAPL) smartphones and tablet PCs, and similar devices based on Google’s (Nasdaq: GOOG) popular Android operating system.
News Digest: December 14 报摘： 2012年12月14日
The following press releases and media reports about Chinese companies were carried on December 14. To view a full article or story, click on the link next to the headline.
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- iPhone 5 Hits China As Apple (Nasdaq: AAPL) Market Share Slips (English article)
- Amazon (Nasdaq: AMZN) China Adds Kindle Store Channel (English article)
- Sinopec (HKEx: 386) Enters E-Commerce, Sells Gas, Goods Online (Chinese article)
- Spreadtrum Communications (Nasdaq: SPRD) Declares Quarterly Cash Dividend (PRNewswire)
- LDK (NYSE: LDK) Solar Announces Arbitration Award (PRNewswire)
M&A: HSBC Dumps Ping An, Sinopec in Nigeria 汇丰拟售平保股份 中石化收购尼日利亚石油资产
Two new mega-deals on the M&A front are highlighting the fact that foreign companies are shedding assets as they look to improve their performance during the global downturn, providing both risks and opportunities for major Chinese firms. On the risk side of the equation, Ping An Insurance (HKEx: 2318; Shanghai: 601318) is learning the hard way that having a big foreign investor has both its advantages and disadvantages, as global banking giant HSBC (HKEx: 5; London: HSBA) prepares to dump its $9.5 billion stake in the company. On the positive side, oil refiner Sinopec (HKEx: 386; Shanghai: 600028) could be getting a good deal with its new $2.5 billion purchase of Nigerian oil assets from Total (Paris: TOTF) as the French oil giant looks to raise cash to boost its exploration operations.
News Digest: November 20 报摘： 2012年11月20日
The following press releases and media reports about Chinese companies were carried on November 20. To view a full article or story, click on the link next to the headline.
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- HSBC (HKEx: 5) In Talks To Sell $9.3 Bln China Ping An (HKEx: 2318) Stake (English article)
- Jingdong Mall Launches Online Music Service (English article)
- MIIT to Release Plan for Trial Private Investment in Telecom Sector (English article)
- Qihoo 360 (NYSE: QIHU) Reports Q3 Unaudited Results (PRNewswire)
- Total (Paris: TOTF) Sells $2.5 Bln Nigeria Oil Field Stake to Sinopec (HKEx: 386) (English article)
News Digest: November 14 报摘： 2012年11月14日
The following press releases and media reports about Chinese companies were carried on November 14. To view a full article or story, click on the link next to the headline.
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- China Sells Jetliners, May Spur Eastern Air Lines Revival (English article)
- LDK Solar (NYSE: LDK) Reaches Agreement to Terminate Wafer Contract (PRNewswire)
- Huntsman, Sinopec (HKEx: 386) In JV To Build, Operate Nanjing PO/MTBE Facility (PRNewswire)
- Renren (NYSE: RENN) Announces Unaudited Q3 2012 Financial Results (PRNewswire)
- Apple (Nasdaq: AAPL) Appeals 520,000 Yuan Award in China Encyclopedia Case (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Haier: A Model to Follow With F&P Deal 海尔：中国企业海外并购的榜样
The brief but colorful tale of one of China’s better-executed overseas M&A deals appears to be nearing a happy ending, with word that home appliance giant Haier’s (HKEx: 1169) slightly sweetened takeover bid for Fisher & Paykel (NZ: FPA) has finally won approval from the New Zealand company’s board. Haier’s raised bid of NZ$1.28 per share appears to be just the right amount it needed to convince F&P’s board to approve the deal, marking a 7 percent increase over an initial offer of NZ$1.20 per share. (English article; Chinese article) I’ve had nothing but praise from the start for Haier in its handling of this deal, which looks like a good template for other Chinese companies to follow.
Sinopec’s China Gas Bid Flames Out 中石化放弃敌意收购中国燃气
One of the more entertaining and strange cases of hostile M&A by a big state-run firm has quietly flamed out, with the announcement by oil major Sinopec (HKEx: 386; Shanghai: 600028; NYSE: SNP) that it’s dropping an unsolicited bid for piped gas distributor China Gas (HKEx: 384). (company announcement; English article) I’ll admit that I’m not surprised the story has ended this way, even if I’m just a tad disappointed that we didn’t see just a few more fireworks in what was otherwise a colorful story that seemed to involve plenty of bumbling and indecision from Sinopec. I will also add that I don’t have much sympathy for the speculators who will probably lose money after buying big stakes in China Gas on the hopes that Sinopec would raise its original bid for the company made back last December.
News Digest: October 16 报摘： 2012年10月16日
The following press releases and media reports about Chinese companies were carried on October 16. To view a full article or story, click on the link next to the headline.
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- Sinopec (HKEx: 386), ENN drop $2.2 bln offer for China Gas (HKEx: 384) (English article)
- China’s YY Files For New York IPO For Its Voice And Video Platform (English article)
- China to Allocate 2.6GHz, 190MHz Spectrum for TD-LTE (English article)
- Pharmaron, AstraZeneca (London: AZN) Form Strategic Drug Discovery Tie-Up (Businesswire)
- Southern Publishing Enters Pre-examination Period for China IPO (English article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
China Gas: New Bid Coming from Sinopec? 中石化会提高收购中国燃气的价格吗？
I’ve been watching with fascination for much of the last year as oil refining major Sinopec (HKEx: 386; Shanghai: 600028; NYSE: SNP) makes a bizarre bid for China Gas (HKEx: 384), a natural gas pipeline operator that has made it clear it has no desire to be acquired. Despite seeing its $2.2 billion offer rejected last December and no formal talks or new offers since then, Sinopec has repeatedly extended the deadline for its bid, including the latest extension it has just disclosed through a filing with the Hong Kong Stock Exchange. (HKEx announcement) All this leads me to believe that Sinopec and bidding partner ENN Energy (HKEx: 2688) are preparing to raise their bid for China Gas, with a new offer possible as soon as the deal gets regulatory approval.
CNOOC Rolls out Exploration Welcome Mat 中海油向外国油企开放26块合作区块
In what looks like a brilliant tactical move, oil major CNOOC (HKEx: 883; NYSE: CEO) has just issued a massive new invitation for foreign companies to help it develop oil fields off the China coast, a move that should help both the company and Beijing to advance some of their most recent initiatives. In CNOOC’s case, the latest offering of 26 offshore blocks for co-development could help to show that it isn’t only interested in buying assets in other countries but is also prepared to offer assets in its home China market to foreign oil majors. On a more geopolitical level, the offering of so many new blocks for development is likely to send the signal that China wants to move aggressively to settle some of the noisy territorial disputes with many of its Asian neighbors, many of which involve disputed islands in ocean areas that could contain valuable new oil deposits.
