China DealBook
A Newsletter on Deal Making in China

By: ChinaDesk | January 05, 2017

A Newsletter on Deal Making in China

chemchina_syngenta_acquisition_china_m&a_dealbook_newsletter

Deal News

 

EU regulators delay ChemChina/Syngenta merger decision to April

European Union antitrust regulators have extended the deadline for a decision on ChemChina's proposed buy of Swiss pesticides and seeds group Syngenta by 10 working days to April 12.

 

The European Commission opened an in-depth investigation into state-owned ChemChina's $43 billion bid in October, saying the companies had not allayed concerns over the deal. "ChemChina and Syngenta remain fully committed to the transaction and are confident of its closure," the Swiss company said.

 

Sinopec mandates 6 banks to advise on unit revamp ahead of IPO

China Petroleum and Chemical Corp (Sinopec) has mandated six banks to advise it on a restructuring of its fuels distribution unit ahead of a planned initial public offering in Hong Kong, IFR reported on Wednesday, citing people close to the deal.

 

Chinese Funds Inject $300M In Warburg-Backed E-Shang Redwood

A group of Chinese investors have invested US$300 million in Warburg Pincus-backed Asian logistics property devleoper e-Shang Redwood, as the company prepares for an initial public offering this year, it said. 

 

Tencent, Warburg Lead $215M Series D Round In China's Mobike
Chinese Internet giant Tencent Holdings Ltd. and Warburg Pincus have led a US$215 million series D funding round in Mobike, a Chinese smart bike-sharing company.

 

China’s Tencent doubles down on Southeast Asia
The Chinese giant has formed a joint venture with Ookbee, investing US$19 million to turn the venture into a “content ecosystem” for digital media. The deal comes weeks after Tencent renewed its push into Thailand by shaking up its operations in the country, which center around popular web portal Sanook.

 

Venture-Backed Gaming Firm G-bits Completes A-Share IPO

Gbits Network Technology Co. Ltd., a Chinese online gaming company backed by IDG Capital Partners and Fortune Capital, has completed an initial public offering on the Shanghai Stock Exchange, raising RMB961 million (US$138 million). 

 

AEA-backed ThreeSixty Group buys US lifestyle brand
AEA Investors-owned ThreeSixty Group, a China and US-based business that designs, sources and distributes consumer products for US retailers, has acquired lifestyle brand The Sharper Image from Iconix Brand Group for $100 million.

 

Maersk, Alibaba team up to offer online booking service for ship space
The world's largest container shipping line Maersk has teamed up with Alibaba (BABA.N) to allow shippers of goods to reserve space on its vessels through the Chinese e-commerce giant, in a move that bypasses traditional middleman freight forwarders. Maersk, a unit of Denmark's A.P.

 

Fidelity International Gets Nod to Sell Investment Products in China
Chinese financial regulators have given Fidelity International the green light to offer local investment products to wealthy mainland investors, making it the first major foreign fund manager to get such permission.

 

C-Bridge leads $100m round for China's Ascletis
Healthcare-focused PE firm C-Bridge Capital has led a Series B round of funding worth $100 million for Ascletis, a Chinese biotechnology company that specializes in treatments for liver disease.

 

Meridian Capital China Joins $17M Venture Round In Aipinji
Meridian Capital China and Hangzhou Hongfan Tiansheng Capital have led a RMB120 million (US$17 million) series B funding round in Aipinji, a Uber-like application for airline tickets in China.

 

Trustbridge Partners Leads $23 million Series A Round In Shanghai Bajiulin
Trustbridge Partners has led a RMB160 million (US$23 million) series A round in Shanghai Bajiulin, a new media and knowledge sharing start-up founded by well-known Chinese financial writer Wu Xiaobo.

 

Shenzhen Capital Group Joins $43M Round In Frontier Biotechnologies
Chinese RMB fund Huaxin Century Investment Group has led a RMB300 million (US$43 million) series C round in Frontier Biotechnologies Inc., a new drug development bio-pharmaceutical company in China. Shenzhen Capital Group Co., Ltd and Efung Capital also participated.

 

Meizu is the latest Chinese smartphone firm to sign a licensing deal with Qualcomm
Qualcomm was hit by a near $1 billion fine for violating China’s antitrust regulations in 2015. That was rock bottom — and another example of a U.S.

 

Shenzhen and Hong Kong partner on technology park
Shenzhen and Hong Kong will partner on constructing a technology park in Lok Ma Chau Loop on their border after city authorities signed a memorandum of understanding for its development on Tuesday.

 

Other Updates


What can we expect in China in 2017?
Provided geopolitical movement doesn’t derail his best laid predictions, Gordon Orr sees a year of slowing economic growth, headaches for multinationals, demographic anxiety, and buyer’s remorse for soccer tycoons.

 

Chinese Bond Defaults Could Accelerate In 2017
The recent rally in coal prices hasn’t reversed the fortunes of many Chinese coal producers still wallowing in overleveraged balance sheets, high debt burden and weak demand. Recent bond market travails of these companies signal more defaults may lie ahead for Chinese onshore issuers as trillions of yuan in bonds become due in 2017.

 

China plans to spend $115 billion on railways in 2017: Xinhua
China plans to spend 800 billion yuan ($115.09 billion) on building railways this year, the same budget as last year, to grow its network to 150,000 kilometers, state news agency Xinhua reported on Wednesday.

 

China Starts Freight Train to London as Xi Boosts Trade Ties
China started a freight train to London as part of President Xi Jinping’s efforts to strengthen trade ties with Europe, Xinhua reported, citing state-owned China Railway Corp.

 

China to open a wider door to foreign investment
China's National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) published a draft of a revised catalogue for the Guidance of Foreign Investment Industries in early December for public comments.

 

China Inc.’s Large Dollar Debts Fuel Beijing’s Efforts to Curb Yuan Plunge
The large pile of foreign debt owed by Chinese companies, from state-owned banks to airlines, is giving added impetus to Beijing’s efforts to keep the yuan from falling too steeply against the rallying dollar.

 

Beijing start-ups move out as hazardous smog smothers capital
Beijing issued its highest “red” fog alert for a second day running on Wednesday, after weeks of choking winter pollution, and experts are now warning the conditions are starting to have a serious effect on not only attracting new talent and entrepreneurs to the capital, but forcing more to relocate.

 

Chinese Internet majors pursuing growth through M&A, trend likely to continue in 2017
Ctrip’s $1.74 billion acquisition of Scotland-based Skyscanner, while representing a major exit for Europe’s technology ecosystem, is also part of a wave of Chinese M&A transactions – led by its Internet majors seeking to expand their international footprint.

 

Chinese renewable power giant builds global empire
Other investors are wary of Brazil, but when Duke Energy wanted to sell 10 hydroelectric dams there, a Chinese utility shrugged off the country's economic turmoil and paid $1.2 billion to add them to an energy empire that stretches from Malaysia to Germany to the Amazon.