China Investment in Europe 2015 – Update deals UK and Switzerland

China Investment in Europe October 2015 – Update deals UK and Switzerland Oct. 23 – With Chinese president Xi visited UK on October 19, 2015, there were some important China investment deals sealed, particularly in energy sectors with UK-BP to further grow oil resources. In addition, Chinese company-Shanghai Mechanical & Electrical intends to acquire a 100% interest in Switzerland’s Clean Technology. There are related China Investment in Europe 2015.

Chinese investment in EU October 2015 deal 1

China strategic alliance with BP to develop oil resources – Reuters reports that the China National Petroleum Corporation (CNPC) and BP Plc. is set to unveil a strategic alliance with BP to develop oil resources in Iraq and other regions. The pact, one of several high-profile deals to be signed during Oct. 19-23 visit by Chinese President Xi Jinping to Britain, will aim to bolster cooperation between the two companies in Iraq, where they are developing the Rumaila oilfield. The two companies will also seek to further create new joint ventures in other parts of the world. Rumaila, in southern Iraq, is the world’s second-largest oilfield, accounting for about 37% of Iraq’s existing oil reserves. It produced 1.34 million barrels per day in 2014, according to BP’s website. The cooperation between CNPC and BP dates back to 2009, when CNPC, BP and an Iraqi state-owned oil company signed a 20-year agreement to jointly develop oil resources in Rumaila oilfield. Under the agreement, CNPC and BP are obligated to double the oilfield’s capacity to 2.85 million barrels per day, which will require an additional investment of USD 10bn according to industry insiders. BP will also seek to use the alliance to expand its operations in China, and for CNPC, the alliance could offer opportunities to deepen its operations in the North Sea and West Africa.

Chinese investment in EU October 2015 deal 2

Shanghai to Acquire 100% Interest in Switzerland’s Clean Technology Universe – Shanghai Mechanical & Electrical Industry Co., Ltd. (Shanghai Mechanical & Electrical) announced on Wednesday that it intends to acquire a 100% interest in Switzerland’s Clean Technology Universe AG (CTU) for CHF 3.7m (about RMB 22.4m). Headquartered in Winterthur, Switzerland, CTU is a leading service provider in the fields of thermal waste treatment, gas disposal and bioenergy, and is known for its design strength and expertise in project contracting. Shanghai Mechanical & Electrical is a leading mechanical and electrical equipment manufacturer in China. Its parent company, Shanghai Electric Group, is the biggest electrical equipment manufacturer in China, and has established 12 joint ventures with well-known multinationals. Shanghai Mechanical & Electrical views this acquisition as a milestone towards its business expansion and restructuring, as it conforms with China’s policy ofsupport to emerging industries.

Chinese investment in EU October 2015 deal 3

China “Sanpower Group” to Acquire UK “Hamleys Toy Store” – According to the BBC’s Chinese language site, China’s Sanpower Group will announce on Thursday, 22 October that it will acquire the UK toy retailer Hamleys for an undisclosed amount. Hamleys is currently owned by Groupe Ludendo, one of France’s biggest toy companies. Ludendo bought Hamleys for GBP 60m in 2012 (or about USD 98m). Founded in 1760, Hamleys is the world’s largest retail chain of toy stores. It has a flagship store on London’s Regent Street which is considered to be a major tourist attraction in West London. Founded in 2000, Sanpower Group operates a diversified portfolio that incorporates the finance & investment, retail & trading, information services, medical & health and real estate sectors. Following its acquisition in 2014 of an 89% stake in the UK department store House of Fraser for GBP 155m, this latest acquisition of Hamleys marks the yet another important step towards Sanpower’s global expansion.

Chinese investment in EU October 2015 deal 4

China Vanke to Buy 20% Stake in Stage Development Project in London for GBP 30m – The Estate Gazette reported on Saturday that China Vanke Co., Ltd. intends to buy a 20% stake in the Stage development in London for GBP 30m to expand into the UK real estate market. The Stage development consists of a 40-storey tower with 385 flats on a 2.3 acre site in Shoreditch, East London, and is home to the 16th-century Curtain Theatre. It will also incorporate a recreation center built on a 150-year old railway bridge. Vanke is a leading real estate developer in China which started its overseas expansion in 2013. Thus far, it has invested in Singapore, San Francisco and New York. This acquisition, if successfully concluded, will help Vanke break into the UK real estate market. For the List Of Chinese Companies Invested In Denmark available upon request, please contact with DCCC, or mail to: