OceanwideYili shares agreessurge onto buy Shengmu Gemworth Milk for purchase$2.7 billion
Chinese family-owned companyDairy giant China Inner Oceanwide Mongolia HoldingsYili Industrial Group Groupsaid on Co Sunday Ltd saw thatits sharesit agreed surge onto Monday,buy US mortgagethe first day insuranceit resumed and tradinglongterm after its care announcementinsurance that Genworth it will acquire Financial China Inc Shengmufor $2.7 billion Organic in Milk cash, Ltd and one plans more to move expand by in Chinesethe high-end enterprises milk leveragingproducts market. from global resourcesYili shares to surged expand 7.32 their percent business and and closed diversifyat 17.29 their yuan investment($2.55) in Shanghaiportfolio. trading on China Monday, Oceanwide’sthe first investmentday it resumed platform trading. will pay $5.43 per Yili share said for Newit plannedYork Stock to Exchange-listedacquire a 37 percent Genworth,stake in 4.2 Inner percent Mongolia-basedhigher than ChinaGenworth’s Shengmu, closingthe largestprice last organicFriday. milk producer in China. It will raise China funds Oceanwideof 9 billion yuan also by promisedoffering 587 to million provide shares $600 in million private to placements, Genworth accordingto cover theto its US statement insurers’ last debt week. maturing Hongin 2018 Kong-listedand another China$525 million Shengmuto strengthen suspended its tradinglife insuranceon Monday business. and will soon releaseThe twocompaniesa statement saidon the the transactiontakeover, the companywould bring said. a win-winYili, one of situationthe earliest which dairy would producers benefitin the the organic growth milkof both market, parties. said it plans to integrate “Chinaits upstream Oceanwide high-qualityis an ideal supply owner chain for capabilities,Genworth going expand forward. high-end They milk recognize categories, the and strength rapidlyof expandour mortgage its organic insurancemilk business. platform and the Meanwhile, importance Yiliof long-termplans to care invest insurance538 millionin addressingyuan in a an dairy aging production population,”line in Tom New McInerney,Zealand and spend president about and 2.5 chief billion executiveyuan in a officer domesticof Genworth, project to improvesaid in a statement.the quality of value-added Beijing-basedChinadairy products,Oceanwide in additionhas diversifiedto investing into in businesses an R&D center includingand a cloud financial business services, platform energy,in China, culture and media,By 2017, and realthe estate. output value of Shanthe globalXue, an organic analyst milkand investmentmarket is expectedexpert withto reachJIC Group,$15.1 billion,said withan increasingan annual number compound of growth Chinese rate companiesof 9.1 percent,are now according targetingto globalservices researchand consumption-drivenagency Transparency sectors Market when Research. buying overseas companies.China hsa a significant growth“In the potentialpast Chinesefor organiccompanies milk, thanks preferredto emergingto acquire middle-class resource assets, Chinese and consumersnow they attachwho have more been importance increasinglyto technologies,favoring natural, expertise pollutionfree,and market organic expansion,”dairy products.said Shan.