Sun, December 19, 2010
Business > Industries

Top 10 overseas Mergers and Acquisitions in 2010

2010-12-19 12:23:39 GMT2010-12-19 20:23:39 (Beijing Time)  China Daily

Editor's note: China's enterprises eye global expansion via mergers and acquisitions (M&As) in 2010 as the country's economic power increases. Although most big deals took place in industries such as mineral resources, energy and power and were conducted by the State-owned companies, some private companies also made inroads in overseas foray. Here we list some impressive investments by Chinese companies in 2010.

1. Sinopec pays $7b for Repsol’s Brazil unit

2. CNOOC buys Bridas stake for $3.1b

3. PetroChina, Shell to acquire Arrow for $3.1b

4. Geely's Volvo buy

5. Chalco invests $1.35b in Rio's Simandou iron ore project

6. Huaneng buys into InterGen

7. PCM acquires GM's parts-supplier unit

8. Ansteel invests in US mill

9. Bright Food inks NZ deal

10.ICBC acquires majority stake in the Thai lender

1. Sinopec pays $7b for Repsol's Brazil unit

China Petrochemical Corp, also known as Sinopec, which is China's second-largest energy company, agreed to pay $7.1 billion for a 40 percent stake in Madrid-based Repsol YPF SA's Brazilian unit in October, which has reserves in the same area as the biggest oil discovery in the Americas this century.

That amounts to $15 a barrel. The investment is the country's the largest overseas acquisition this year.

2. CNOOC buys Bridas stake for $3.1b

China National Offshore Oil Company Limited (CNOOC Ltd), China's biggest offshore oil explorer, inked a $3.1 billion deal with Argentina-based Bridas Energy Holdings (BEH) to buy a 50 percent stake in the BEH subsidiary Bridas Corporation in May.

The transaction will increase CNOOC Ltd's proven reserves by 318 million barrels of oil equivalent (BOE) and the average daily production to 46,000 BOE, based on 2009 figures.

3. PetroChina, Shell to acquire Arrow for $3.1b

PetroChina Company Limited (PetroChina), the country's largest oil and gas producer, agreed to a joint bid with Royal Dutch Shell Plc to buy all shares of Australian coal seam developer Arrow Energy for A$3.5 billion ($3.15 billion) in March.

CS CSG (Australia) Pty Ltd, the 50-50 joint venture owned by PetroChina International Investment Company Ltd and Shell Energy Holdings Australia Ltd, paid A$4.70 per share in cash and own Arrow's Coal Seam Gas (CSG) assets in Queensland and domestic power business.

Arrow shareholders approved the takeover in July and finalized the deal in August.

4. Geely's Volvo buy

Zhejiang Geely Holding Group, China's No 10 automaker, sealed a deal in March to buy ailing Swedish luxury car brand Volvo from US giant Ford for $1.8 billion.

The deal is China's biggest overseas auto purchase and represents the most ambitious move by a homegrown auto brand. It will offer Geely, a producer with lower-end image, access to a high-end brand and technology it needs to compete with much bigger rivals in China.

The acquisition was completed in August.

5. Chalco invests $1.35b in Rio's Simandou iron ore project

Aluminum Corp of China Ltd (Chalco), the nation's largest metal producer, in July agreed to pay $1.35 billion for a stake in Rio Tinto Group's Simandou iron ore project in Guinea, making its first investment in the commodity.

The agreement followed an initial accord on the project with Chinalco, Chalco's State-owned parent, in March. Chalco will acquire a 44.65 percent stake by funding development over the next two to three years.

This is Chalco's biggest overseas investment after it pulled a plan in June to develop a A$3 billion ($2.7 billion) bauxite project in Australia.

6. Huaneng buys into InterGen

China Huaneng Group, the nation's largest electricity producer, will pay $1.23 billion to acquire GMR Infrastructure's 50 percent stake in Massachusetts-based power utility InterGen.

This is Huaneng's biggest overseas acquisition in more than two years. The Chinese company will gain access to 12 power plants in the United Kingdom, Netherlands, Mexico, Australia and the Philippines after the transaction.

The deal, which is subject to regulatory approvals, is expected to close in the first half of 2011.

7. PCM acquires GM's parts-supplier unit

Pacific Century Motors (PCM), a joint venture between Tempo Group and the Beijing municipal government, completed the acquisition of General Motors' steering-parts manufacturing unit in December, setting a record for the biggest single overseas purchase in China's automobile parts industry.

The takeover of Nexteer Automotive involves its global steering and half-shaft operations, including 22 manufacturing facilities, six engineering facilities and 14 customer support centers, which have 8,300 employees in North and South America, Europe and Asia.

The deal was estimated to be worth between $420 million and $450 million.

8. Ansteel invests in US mill

Anshan Iron & Steel Group inked an agreement in September with Steel Development Company (SDC) to cooperate on construction of a steel rebar plant in the United States. Total investment in the Mississippi steel rebar project was $168 million, with the Chinese steel maker taking a 14 percent stake.

The investment, which faced strong opposition from US lawmakers and was proposed in May, is the first case of a Chinese company investing in a US steel mill.

9. Bright Food inks NZ deal

Shanghai-based Bright Dairy & Food Co agreed in July to pay $58 million for a 51 percent controlling stake in New Zealand's Synlait Milk Ltd, marking its first overseas investment.

The investment capital would be used to pay Synlait Milk's bank loans and establish a new factory in New Zealand after the deal is completed. The deal is the first overseas purchase in China's dairy industry.

10. ICBC acquires majority stake in Thai lender

Industrial & Commercial Bank of China Ltd (ICBC), the world's largest bank by market value, acquired a 97.24 percent stake in Thailand's ACL Bank with about $545 million in April.

The Chinese lender would get 1.55 billion of ACL's ordinary shares and 282, 048 ACL preferred shares after the transaction. The deal gives ICBC a foothold in Thailand and may also help bolster ties between Thailand and China.

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