Search

Reports on interim regulations on management buyouts (MBO) of state-owned enterprises (SOE) in China which signifies the government's recognition of the practice of managers and executives of a company purchasing controlling interest in a company from existing shareholders. Prohibition of MBO in large-scale SOE while permitting them in small and medium-sized ones; Acknowledgment that MBO is a path to efficient corporate management.

Reports that government officials have approved the large-scale restructuring of state assets through mergers and acquisitions in China. Reform of state-owned enterprises; Adjustment of industrial structure; Achievement of industrial upgrading; Defects in the property rights and capital flow structures.

The article discusses the overseas expansion strategy of Chinese enterprises of launching low-key approach in investments, as exemplified by the joint acquisition of a 12% stake in Rio Tinto by the Aluminum Corp. of China (Chinalco) and Alcoa. The acquisition has a total price of $14.05 billion, into which Alcoa committed $1.2 billion. The impact of the Rio Tinto acquisition on mining company BHP Billiton is analyzed.

The article focuses on the acquisition by foreign corporations of China's cosmetics brands. Beijing Dabao Cosmetics Co. has signed an acquisition deal with Johnson & Johnson in order to improve its brand performance and penetration. Foreign companies are targeting Chinese cosmetic brands with the objective of penetrating middle and low end markets. However, the article reports, that local companies are feeling the impact of such acquisition trends.

The article focuses on the Chinese government's plan to adjust their foreign investment policies. The National Development and Reform Commission (NDRC) and the Ministry of Commerce are currently preparing restrictions on mergers and acquisitions (M&A) by foreigners. According to an official from the NDRC, the examination of such M&A will begin with those in the equipment manufacturing industry.

The article reports on the initiative made by the private oil sector in China to acquire shares from foreign industries for establishment purposes. According to an owner of a private gasoline station in Guangzhou Li Qi, for a period of one year, his business competitors and partners vanish. He added that, 90% of the private oil businesses were already acquired by the two largest oil companies in the country, the PetroChina Co. Ltd. and Sinopec Co. Ltd.

The article reports on the decision of Bank of China (UK) Ltd., a wholly-owned subsidiary of the Bank of China Ltd. (BOC) to acquire a 30-percent stake in Heritage Fund Management (HFM) SA of Switzerland. The acquisition costs around 60 million yuan. It relates the impact of the acquisition on the aim of BOC to expand its private banking services in other countries. It explores the problems that BOC may encounter in its foray into private banking.

The article reports on a takeover bid for Midwest Corp., an iron ore miner in Perth, Western Australia, by steel maker Sinosteel Corp. in China. According to Xu Xiangchun, director with Beijing Lange Iron and Steel Research Center, Sinosteel's takeover bid is a commercial behavior recognized by both Chinese and Australian authorities. It states that the takeover may add to China's bargaining power in the annual iron ore price talks.