Feb. 19 – Chinese companies invest overseas mainly target three sectors in the next few years: infrastructure, TMT & financial services, according to survey Ernst & Young. Also, Europe and North America are the top two focus global regions for overseas investment by Chinese companies or Chinese investors in the future. Here are the Chinese investors recent 5 major deals – investments involving China.
China’s Ant Financial acquires int’l payment firm WorldFirst
Ant Financial, an Alibaba affiliate, announced on 14 Feb it has taken over UK-based international payments group WorldFirst, marking the most significant foreign fintech acquisition by the Chinese financial services company. Ant Financial, operator of the world’s leading payment platform Alipay, said in a statement that Alipay will work with WorldFirst to better serve global small businesses, promote inclusive finance and contribute to sustainable development in the world. WorldFirst, now a wholly-owned subsidiary of Ant Financial, will continue to be headed by co-founder and CEO Jonathan Quin. The UK-headquartered company will continue its regulated business with global operations, including in the Chinese mainland and Hong Kong.
Quin wrote in a letter to its customers that the products and services of Alipay and WorldFirst are highly complementary and that WorldFirst will be able to offer even better products and services by becoming part of a larger group. “By combining WorldFirst’s award-winning currency account, international payments and currency exchange products with Ant Financial’s range of financial technology solutions, we will advance our shared aims of building the best global platform for international trade and bring fast and affordable services to individuals, small and medium-sized businesses and online merchants around the world,”
Chinese company HBIS agrees to buy 70% of Tata’s Southeast Asian steel projects
Chinese steelmaker HBIS Group agreed to buy 70 percent of Indian conglomerate Tata Steel’s projects in Southeast Asian countries on 28 Jan, which is considered a “smart move” to invest in this regional market by experts. HBIS, the world’s third-largest steelmaker by output, which is based in Hebei province, will take over Tata Steel’s projects in Singapore, Thailand, Vietnam and Malaysia, in order to maximize opportunities in the region on technology, channels and management.
The company didn’t disclose the detailed investment scale of the projects. Yu Yong, president of the group, said the company has seized the strategic opportunities in the steel industry’s recapitalization in recent years to implement its global arrangement. “Through the talks, we found that HBIS and Tata Steel share the same view on the world steel industry’s future, which is the foundation of our cooperation.” It’s not the first time that HBIS stepped into the overseas market through capital investment. In April 2016, HBIS spent 46 million euros ($52.5 million) to buy a steel factory in Serbia and realized a profit in several months. President Xi Jinping visited the steel factory in June 2016, saying that the project will bring jobs to the local community and improve the local’s living standards by reviving the steel factory.
HBIS will seize the opportunities offered by the growing steel demand in Southeast Asia, Yu said. Xu Xiangchun, information director and analyst with iron and steel industry consultancy mysteel.com, said Southeast Asia has been a popular destination for steel investment in recent years because of the large population and its fast economic growth. “It’s one of the fastest growing markets in the world,” Xu said. “However, building new steel production capacity may lead to oversupply risks since steel players in China, Japan and South Korea are all investing actively in the region. Plus, it will take much longer time.” “Thus, to enter the market through acquisition is effective and smart.”
According to mysteel.com, the steel shortage in Southeast Asia is around 100 million metric tons annually, and the region depends on imports. Xu added that due to the global oversupply in steel industry, there is a possibility that Southeast Asia can be affected by fast increasing investment. Cheng Binhong, deputy general manager of the Industrial and Commercial Bank of China’s Investment Banking Department, said during the signing ceremony that as world-level steel companies, HBIS and Tata Steel have a major role in the different regions. TV Narendran, chief executive officer and managing director of Tata Steel, said he is confident that the steel projects in Southeast Asia will continue to grow in the future after the investment. “Tata Steel shares the same culture with HBIS and we will explore more cooperative possibilities in future,” he said. Late last year, he told the media that the first half of 2019 will be a strong period for the steel industry globally.
China’s Masterwork Group to become largest shareholder of German engineering company
China’s Masterwork Group has announced it intends to obtain an 8.46 percent stake of Heidelberger Druckmaschinen AG (Heidelberg) by way of cash subscription. The proposed investment, subject to approval by Heidelberg’s supervisory board, will make a wholly-owned subsidiary of Masterwork the largest shareholder of the German precision mechanical engineering company, according to Masterwork. With the issue price of the new shares set to be 2.68 euros ($3.06), the total investment will be worth about 68.99 million euros ($78 million). “We believe that the strategic investment will enhance our partnership and make contributions to the development of high-end equipment manufacturing in China as well as the world,” said Li Li, president of Masterwork.
The two sides have also signed a strategic cooperation agreement, aiming to accelerate their digital push in the packaging printing industry, according to Masterwork. “We are delighted that in Masterwork we are obtaining another long-term investor that firmly believes in the company’s innovative prowess, strategy, and potential for the future,” Heidelberg CEO Rainer Hundsdorfer said. Based in the Chinese city of Tianjin, Masterwork is China’s largest manufacturer of die-cutters and hot-foil embossing machines. Established in 1850, Heidelberg is a world-leading manufacturer of offset printing equipment.
Chinese company buys 60% stake in Peru port
COSCO Shipping Ports Ltd has reached an investment agreement with Volcan Compañía Minera SAA, a Peruvian polymetallic miner, to acquire 60 percent of its stake in Terminales Portuarios Chancay SA for $225 million. With an initial payment of $56 million, this deal was sealed in Davos, Switzerland, on Wednesday, the Chinese company said in a statement on 24 Jan. After the acquisition, Chancay terminal will become the first terminal project controlled by China COSCO Shipping Corp－the parent company of Hong Kong-headquartered COSCO Shipping Ports – in South America, as well as the group’s second greenfield port project invested overseas. Volcan is a Peruvian polymetallic miner engaged in the exploration and production of zinc, copper, gold, silver, and lead in Peru’s Sierra Central region. In addition to mining business, the company also operates ports, logistics companies and hydroelectric power plants in the country.
Located at Chancay Harbor in central Peru and about 58 kilometers from the country’s capital Lima, Chancay terminal boasts an exceptional geographic location and is connected with the economic center of Peru by convenient traffic. It is a natural deep-water harbor with a maximum of 16-meter water depth and is capable of meeting the needs of mega vessels. The construction of Chancay terminal includes multipurpose terminals, container terminals and related infrastructure facilities. Phase one of the terminal will have four berths, of which two are multipurpose berths, and two are container berths with a total annual designed capacity of one million TEU, or twenty-foot equivalent units－an industry measure of cargo capacity. Xu Lirong, chairman of China COSCO Shipping, said the business move in Peru, which covers the entire logistics industry chain, will not only embody the company’s coordinated development, but also inject vitality into target countries and regions.
After the acquisition, COSCO Shipping Ports and Volcan can fully utilize their resources and capabilities to jointly build Chancay terminal into a major gateway port in Peru. It will facilitate trade between Peru and China, and between China and Latin America while creating jobs, services and infrastructure investment opportunities, said Li Guanghui, vice-president of the Chinese Academy of International Trade and Economic Cooperation. Zhang Wei, vice-chairman of COSCO Shipping Ports, said the investment in Chancay terminal will enable the company to further extend its reach to South America. The terminal will also help cut Peru’s deficiency in port infrastructure. “The two companies will make full use of their advantages to build Chancay terminal into a key hub in South America, the most important logistics center on the Pacific coast, and a major platform that serves bilateral trade,” he said. COSCO Shipping Ports’ terminal portfolio covers the five main port regions on the Chinese mainland, Southeast Asia, the Middle East, Europe and the Mediterranean. By the third quarter of 2018, it operated and managed 282 berths at 36 ports worldwide, of which 192 were for containers, with a total annual handling capacity of approximately 104 million TEU.
Chinese Investor Evergrande buys 51% of NEVS
Chinese property developer Evergrande Group has paid $930 million to gain a 51% stake in National Electric Vehicle Sweden, owner of the assets of bankrupt Saab Automobile AB. Chinese Investor Evergrande Group is China’s third-largest property developer by sales. The Group has bought control of the electric vehicle maker through its subsidiary Evergrande Health, bolstering Group founder’s ambition to diversify from real estate into the rapidly growing EV industry. The company already owns 31 % of Californian EV startup Faraday Futures after initially settling for 45% stake, but more about that later. The latest EV company that Evergrande has bought into, National Electric Vehicle Sweden, is itself entirely Chinese-owned despite having “Sweden” in its name. NEVS initial purchase of Saab bankrupt estate would have licensed the company to use the Saab brand and its griffin logo on vehicles assembled in China. Evergrande has been determined to expand into the EV market.
Connect with Chinese Investors for Potential Investment Opportunities
2019 is the year for start-ups team up with Chinese investors, there is a perfect environment for innovative high-tech entrepreneurs, and venture capitalists from China are ready taken on. A rapidly growing economy with 1.4 billion population, China presents massive business potentials to invest in start-ups, innovative high-tech entrepreneurs in the sectors of infrastructure, TMT, sports and tourism, agribusiness and financial services, there are leading Investors in China line up for start-ups. For those who are business owners looking for Chinese investors, or property firms looking for right venture capitalists from China, the List of Chinese Investors/Investment Firms Based in China is available upon request. Please contact DCCC– the organization assists foreign companies to connect with reliable Chinese Investors, email firstname.lastname@example.org