What’s on China’s shopping list?
Chinese companies, driven by favourable government policies and a desire to gain overseas assets, are on an unprecedented acquisition spree in the United States. They’ve announced a record $40.5 billion of American deals this year, already nearly double the amount for all of 2015.
Here’s a sample of what Chinese money is buying these days, writes Bloomberg’s Elizabeth Fournier.
LUXURY HOTELS
Strategic Hotels & Resorts Inc.’s portfolio includes Four Seasons properties in Austin and Silicon Valley, as well as the Intercontinental Miami and Chicago. China’s Anbang Insurance Group Co. is paying about $6.5 billion US to buy the hotel group from Blackstone Group LP — just three months after the New York-based private equity firm acquired it.
MORE LUXURY HOTELS
Anbang is also the lead bidder for Starwood Hotels & Resorts Worldwide Inc., after twice topping Marriott International Inc.’s bid. Starwood owns real estate valued at about $4 billion US, including the St. Regis in New York. Anbang’s latest offer values Starwood at about $14 billion US.
APPLIANCES
General Electric Co. agreed to sell its appliances business to China’s Haier Group Co. for $5.4 billion US in January — $2 billion US more than Electrolux AB had agreed to pay for the business before the deal collapsed amid opposition from the U.S. Justice Department. Haier will need antitrust approval from authorities in the U.S., Mexico, Canada and Colombia.
CRANES
Zoomlion Heavy Industry Science & Technology Co., a Chinese industrial machinery manufacturer, is pursuing Westport, Conn.-based cranemaker Terex Corp. Terex agreed to a merger with Finnish competitor Konecranes Oyj, but Zoomlion made an unsolicited counterbid in January, and last week upped its offer to $31 US a share.
THE DARK KNIGHT’S HOLLYWOOD PRODUCER
China’s richest man agreed to buy Legendary Entertainment LLC, producer of Godzilla and the Dark Knight trilogy and co-producer of Jurassic World, in January for as much as $3.5 billion US. Wang Jianlin is set to become the first Chinese person to control a Hollywood
film company.
SOFTWARE DISTRIBUTORS
Computer, networking and software distributor Ingram Micro Inc. was snapped up in February by an arm of China’s HNA Group Co. for an equity value of about $6 billion US. Ingram Micro will continue to be run from Irvine, Calif., and will become part of the Chinese conglomerate that acquired airport luggage handler Swissport International AG last year and missed out on London City Airport last month.
A GAY DATING APP
Beijing Kunlun Tech Co., an Internet games company that helped introduce Angry Birds to China, bought a majority stake in Grindr, the world’s biggest gay social-networking app. Chairman Zhou Yahui’s company offered $93 million US in cash for 60 per cent of New Grindr LLC and is now scouting for other potential U.S. investments.
A STOCK EXCHANGE
The Chicago Stock Exchange said in February that a Chinese investor group, Chongqing Casin Enterprise Group, agreed to acquire it. The 134-year-old bourse only handles about 0.5 per cent of U.S. stock trading, but the deal, which needs regulatory approval, would be the first Chinese acquisition of a U.S. exchange.