Two new stories in the consumer space are offering an interesting look at the difficulty of taking over Hong Kong-listed companies, providing headaches for potential acquirers but also interesting opportunities for minority investors. The 2 cases involve dairy giant Mengniu (HKEx: 2319) and Swedish paper products company SCA (Stockholm: SCAA), which have each bought a controlling stake of their Hong Kong-listed targets rather than the taking outright ownership that both probably would have preferred. In the former case, Mengniu was aiming to buy raw milk supplier Yashili (HKEx: 1230), while SCA was aiming to buy tissue products maker Vinda (HKEx: 3331) Read Full Post…
Mengniu’s (HKEx: 2319) new announcement of its third major tie-up in the last month marks the latest step in an important and necessary consolidation for a battered Chinese dairy sector that has been in turmoil for the last 5 years. This kind of retrenchment, which includes a healthy dose of participation by foreign firms, is exactly the kind of medicine that China needs to restore consumer confidence to its fragmented and often unruly food sectors. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 19. To view a full article or story, click on the link next to the headline.
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Mengniu (HKEx: 2319) Adds Another Deal With Offer For Carlyle’s Yashili (English article)
EU Trade Chief To Discuss Solar Dispute In Beijing (English article)
Software Developer SkyTech to IPO in HK – Source (English article)
Qihoo 360 (NYSE: QIHU) To Roll Out Portable Wi-Fi Router Device (Chinese article)
Huawei, Responding To Rumors, Says No Plans To Buy Nokia (Helsinki: NOK1V) (English article)
