I’ve been writing for much of the last 3 weeks about the rapidly fading appetite for Chinese IPOs among western investors, and the latest reports that pork producer WH Group has scrapped its plans for a Hong Kong listing certainly seem to add to the gloom. But I should add that this particular case is slightly different from the many weak performances we’ve seen these last 2 weeks, as it comes in the food space and mostly involves the re-listing of a recently aquired US asset that was already performing poorly. Read Full Post…
Private equity investor Fosun International (HKEx: 656) is closing in on a landmark but controversial deal to buy US publishing giant Forbes Media, which would become the first purchase of a major western media firm by a Chinese company. The deal is almost certain to draw attention in the US where Forbes is based, with some calling for the government to stop the sale over concerns that Fosun could interfere with Forbes’ editorial independence and block publication of sensitive content. Read Full Post…
We’re in that brief window of time each year between the western and Chinese new years, so perhaps it’s appropriate that we’re getting reports of new looks at fast-rising food maker Shuanghui International and online search leader Baidu (Nasdaq: BIDU). Shuanghui has just released an announcement saying it will officially change its name to WH Group as part of a new globalization campaign. Meantime, separate media reports are saying that Baidu is experimenting with adjustments to its signature home page, in a revamp that would be its first in 7 years. Read Full Post…
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…
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)
