Chinese companies cross-border investment in Europe update

Chinese companies cross-border investment in Europe Nov. 6 – China investment in Europe is productive at the beginning of November 2015, there are several significant investment deals are sealed recently. Among others, China Kehua Bioengineering to acquire a 100% stake in Italian TGS is significant deal. Moreover China NetDragon Websoft completes the acquisition of UK Promethean World PLC. Below is the update Chinese companies cross-border investment in Europe 2015.

Chinese companies investment in EU in November 2015 deal 1 – Kehua Bioengineering to acquire a 100% stake in Italian TGS – Shanghai Kehua Bio-Engineering Co., Ltd announced on Tuesday that it plans to invest EUR 28.8m to set up a joint venture in Italy with Altergon Italia. Kehua intends to use the joint venture to also acquire a 100% stake in Technogenetics S.r.l. (TGS), an Italian maker of diagnostic tests, for EUR 18.8m. The company will purchase all diagnostic assets of Altergon Italia. According to Kehua, this marks its first overseas acquisition, and also an important milestone in its global expansion. Founded in 1982, Technogenetics provides clinical diagnostic tests for autoimmune and infectious diseases tests. It has a sales network operating primarily within Italy, but also across other important European countries and regions. Altergon Italia S.r.l was founded in 1999. The company’s main business operations include chemical and pharmaceutical production and distribution. Shanghai Kehua Bio-Engineering Co., Ltd is China’s largest manufacturer and distributor of in vitro diagnostic (IVD) agents.

Chinese companies investment in EU in November 2015 deal 2 – NetDragon Websoft (China)completes the acquisition of Promethean World PLC (UK) – Chinese online game developer NetDragon Websoft Inc announced on Tuesday that it has completed the acquisition of the UK-based interactive white-board maker, Promethean World PLC (LSE:PRW), for USD 130m. In its announcement, NetDragon Websoft said the acquisition would deliver strong brand promotion, global sales and marketing channels, as well as significant business opportunities. Promethean World PLC (LSE:PRW) is a global e-learning technology leader and provides interactive learning solutions. The company currently has a footprint in more than 100 countries. NetDragon Websoft Inc. is a leading innovator and creative force in China’s online gaming and mobile internet industries.

Chinese companies investment in EU in November 2015 deal 3 – Lakala (China) reaches agreement with Allpay (UK) Limited – China’s leading community financial and e-commerce service provider, Lakala Group, has signed an agreement with Britain’s Allpay Limited, as reported by China’s Xinhua News Agency on Thursday. Lakala and Allpay Limited will work together to establish a cross-border financial service platform. They will cooperate in community convenience services, smart wearable devices and cross-border e-commerce. Founded in Hereford, UK in 1994, Allpay Limited is Britain’s largest bill payment service agency, and has an annual transaction size of GBP 5bn. Founded in 2005 and headquartered in Beijing, Lakala operates a diversified service portfolio covering individual and corporate payments, credit investigation, micro-finance and account receivables financing sectors. Lakala’s customer base includes approximately 100 million personal users and more than 3 million corporate users. In 2014, Lakala recorded more than RMB 1.8 trillion in payment transactions. Sun Taoran, Chairman and CEO of Lakala, said Lakala will export payment hardware devices and software to Europe, broadening its product offering in the European market.

Chinese companies investment in EU in November 2015 deal 4 – Rastar Group to acquire up to 56% stake in Spanish soccer club Espanyol. Rastar Group announced on Tuesday that its Hong Kong unit has signed a Share Purchase Agreement with the two shareholders of the Spanish soccer club Reial Club Deportiu Espanyol de Barcelona, S.A.D. to buy up to a 56 percent stake in the latter. Rastar will purchase another 5 percent stake after the acquisition, and the total deal amount is expected to be EUR 64.35m. The company hopes to expand its interactive entertainment business in the sports sector through this deal. Founded in 1990, Barcelona-based Espanyol is a La Liga soccer club and runs a first-class soccer training school. Founded in 2000 and headquartered in southern China’s Guangdong Province, Rastar Group is a leading Chinese manufacturer of model car and related raw materials business.

Mainland Chinese companies have invested heavily in European football clubs over recent years. Last month, CEFC China Energy Company bought a majority stake in Slavia Prague, one of the Czech Republic’s oldest soccer clubs. Earlier this year, Chinese property conglomerate Dalian Wanda Group Co purchased a 20 percent stake in Spanish soccer club Atletico Madrid for EUR 45m. For the complete List of Chinese Companies Invested in The Netherlands is available upon request, please contact with DCCC or email to: