China Top 10 Merger and Acquisition M&A bids in 2007
In 2007, China merger and acquisition activities with buyout deals which made a stir were most concerned and witnessed by many people. They often altered the competitive landscape in a number of industries.
China’s top 10 M&A bids in 2007 have been announced by China merger and acquisition association. The association also invited financial experts to select the 10 most influential M&A bids from a list of 30. The top 10 bids were so close that they became the spotlight of the media in the past ten years. The nation’s financial sector played a major role of making China M&A bids headline in order to against the backdrop of US sub prime mortgage crisis. In the list, it showed up with 5 bids in this sector to defy the global credit crunch.
China investment Corp which is the country’s new State investment agency plowed $3 billion into private equity which underscored China’s increasing boldness in overseas investment and diversified its rising forex reserves.
Soon after, by buying into British Barclays Bank, China development became the heart of a biding war. It just liked Barclays took on a consortium of European banks led by Royal Bank Scotland Group PLC to acquire Dutch banking giant ABN Amro Holding HV. After these two milestone cross-border M&As, the industrial and commercial bank of china found there was a great opportunity in South Africa then invest $5.5 billion into that country’s largest commercial bank, Standard Bank, for a 20% stake, the biggest foreign acquisition by Chinese bank to date. Chinese insurer Ping An group sought 4.18% stake for 1.81 billion euros in Fortis, a Belgian financial service provider running banking and insurance business, becoming its biggest single shareholder.
Very important State-owned enterprises also showed their keen interest in the markets of developing countries. China Mobile communications bought 88.6% of Paktel which is the fifth largest carrier in Pakistan from Luxembourg based Millicom International Cellular. The deal was valued at $460 million.
State Grid Corp of China, which was a consortium led by China’s biggest State power company ,won a $3.59 billion bid because it had a 25 year contract to manage the Philippines’ electricity grid by narrowly beating the one led by food and drinks maker San Miguel. It would well be the largest deal in Philippines’ history.
Foreign company also rushed to purchase stakes in their Chinese counterparts as a stepping-stone to expand in the world’s fastest growing market. Arcelor Mittal, who was the world’s largest steelmaker, bought 28% stakes in China oriental Group for $647 million.
But some foreign companies’ acquisition bids did not go smoothly. While Singapore Airlines Temasek were still struggling to obtain a stake in China Eastern Airlines, French food and beverage maker group Danone SA’s bid meant to control its joint venture with Wahaha and this resulted in a bitter war of words.
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