Jan. 13 – 2016 brings new opportunities and opens the great time for China investment in Europe. It focuses on boosting China’s major industry going global, opening the great times of Chinese businesses’ outbound investment ever than before. With the fresh energy of the New Year, China investment in Europe is swiftly on the way, there were several investment deals sealed in january2016.
China-German deal: ChemChina to acquire German machinery maker KraussMaffei for $1b – Date: 11 Jan 2016. China Investment in Europe 2016 – The first most ambitious deal with Germany, China National Chemical Corporation (ChemChina) entered into a $1.01bn share purchase agreement with Canada’s Onex Corp. and its affiliate, Onex Group to acquire, KraussMaffei Group GmbH. Krauss Maffei Group GmbH, a Germany company, supplies machinery and systems for producing and processing plastics and rubber, which competes with existing plastic processing operations of ChemChina. In light of this, ChemChina has warranted to its investors that it will prevent potential trade competition between its subsidiaries. The purchase adds to ChemChina’s emergence as one of the country’s most ambitious deal-makers after buying or investing in assets in Italy, France, Norway, the United Kingdom and Singapore in the past few years, including tire-maker Pirelli & C SpA. ChemChina said after the deal, China’s biggest acquisition in Germany, the company will retain KraussMaffei’s management and employees, with the headquarters remaining in Munich and operations staying in Europe.
China-Spain deal: Han’s Laser Technology to acquire 95% stake in Spain’s Aritex Cading S.A. – Date: 12 Jan 2016. China Han’s Laser Technology Industry Group Co., Ltd. announced on Monday that it plans to set up an SPV in Hong Kong with AVIC International Aero-development Corporation and AVIC International Capital Co., Ltd. to acquire a 95% interest in Spain’s Aritex Cading S.A. with the remaining 5% to be held by Aritex management. Han’s Laser plans to invest 49.95m euro for a 30% stake in the SPV. Han’s Laser stated it expects to gain access to Aritex’s patented technologies and expand into the aviation and military sectors through this acquisition. Founded in 1961 and headquartered in Barcelona, Aritex Cading S.A. develops and manufactures tools and automation products and services for aircraft and automobile assemblies. Aritex Cading operates in Spain, Mexico, and China, and is a tier one vendor for both Airbus and Commercial Aircraft Corporation of China Ltd. In 2015 it reported operating revenue of 84.6m euros and an EBITDA of 5.1m euros.
China-Italy deal: Huayi Electric to strike deal with Italy’s Kite Gen Venture S.p.A. – Date:12 Jan 2016. Huayi Electric Company Limited announced on Monday that the trading of its shares will be suspended starting Tuesday pending the announcement of a potential deal with Italy’s Kite Gen Venture S.p.A. in high altitude wind power technology. The scope of cooperation may involve equity investment in Kite Gen Venture S.p.A. and a joint venture in China. Huayi Electric has engaged intermediary agencies to assist the two sides in negotiating the deal. Founded in 2011, Kite Gen Venture S.p.A. owns cutting-edge high altitude wind power technology with far-reaching applications in new energy vehicles. If concluded, this deal will substantially impact the future business structure and operating model of Huayi Electric.