China DealBook Newsletter — Aug 22, 2016

Deal News

U.S. Security Regulator Clears $43 Billion ChemChina-Syngenta Takeover Deal

Government-owned China National Chemical Corp. said Monday it had received clearance from the Committee on Foreign Investment in the U.S. for its planned $43 billion acquisition of Swiss pesticide and seed company Syngenta AG.

Syngenta says won’t disclose details of CFIUS clearance

Syngenta was tightlipped on the agreement it has clinched with a U.S. national security panel to approve its blockbuster takeover by ChemChina but said any concessions it made to secure the go-ahead would not be significant.

“We are not disclosing the details of the agreement with CFIUS to respect the confidentiality of the process,” a Syngenta spokesman said by email in response to a Reuters query

As China’s soccer spree accelerates, rival suitors eye Liverpool stake

A consortium led by state-owned financial conglomerate Everbright is not the only Chinese group to have looked at investing in English soccer giant Liverpool, with the club attracting interest from Fosun, property-to-film group Dalian Wanda and others,

Though none have put together a formal bid, interest expressed over recent months in one of England’s most storied clubs reflects a significant step-up in China’s drive to become a soccer powerhouse.

China aims high with Liverpool FC approach

Potential investment in English Club highlights China’s Ambitions.

Delek in binding deal to sell insurer Phoenix to Fujian Yango

Israeli conglomerate Delek Group has signed a binding agreement to sell its 52.3 percent stake in insurer Phoenix Holdings to China’s Fujian Yango Group Co for 1.95 billion shekels ($515.9 million) in cash. Delek had previously agreed to sell its Phoenix stake to China’s Fosun International for 1.8 billion shekels but the deal collapsed when conditions were not met.

Venture-Backed Meitu Seeks To Raise Up To $1B In Hong Kong IPO

Meitu Inc., a photo retouch app developer backed by Qiming Venture Parnters, IDG Capital Partners and others, is planning to raise US$500 million to US$1 billion via an initial public offering in Hong Kong, according to a securities filing.

Chinese investor group buys for $900 million

Advertising technology startup, founded by tech entrepreneur Divyank Turakhia, said on Monday it had been acquired for about $900 million by a group of Chinese investors.

The deal would represent the third-largest in the ad tech industry, after Alphabet Inc unit Google’s acquisition of DoubleClick and Microsoft Corp’s deal for aQuantive.

CNPC’s Backdoor Listing Target Jinan Diesel to Raise $3 Billion

China National Petroleum Corp.’s latest backdoor-listing target announced details of a share sale to raise as much as 20 billion yuan ($3 billion) as part of a plan to take on financial business assets from the sprawling state-owned energy giant. Jinan Diesel Engine Co.

Panda Capital Leads $10M Series B Round In Mobike

Panda Capital has led a US$10 million series B round in Mobike, a Shanghai-based mobile app that allows users to rent bikes for short distance commute, according to Chinese media reports. Joy Capital also participated in the round.

Capital Today-Backed E-Commerce App Daling Raises $45M In New Funding Round

An unnamed Chinese RMB fund has led a RMB300 million (US$45 million) series C round of financing in Beijing-based mobile e-commerce firm Daling, with participation from existing investors Capital Today, IDG Capital and Sequoia Capital, says Chinese media reports.

Private Equity-Backed Mango TV Seeks Back-Door Listing

Mango TV, Hunan Satellite TV’s online video unit with backings from Chinese private equity investors, is seeking to list via a reverse merger with Shenzhen-listed Happigo Home Shopping Co., Ltd., according to a disclosure filing.

Vanke Wants to Talk to Parties Involved in Battle for Control

China Vanke Co., the developer at the center of a battle for control, said it wants to communicate with the parties involved and hopes to reach an agreement over its shareholding soon.

China’s Kingsoft Aims to Take on Alibaba in Cloud Computing

Kingsoft Corp Ltd., the Chinese software company whose chairman is Xiaomi Corp. co-founder Lei Jun, is preparing to go head-to-head with Alibaba Group Holding Ltd. in the rapidly growing market for cloud-computing services.

Other Updates
Did Alibaba Overpay For Lazada?

Earlier this year, Alibaba made headlines when it took a controlling stake in South East Asian ecommerce giant Lazada for $1bn. The company has consistently been in the red for the last 3 years and remains in growth mode.

But Lazada operates in a very favorable South East Asian market and has executed well thus far. Synergies are also key to unlocking value from the deal.

China Is Grappling With Hidden Unemployment

Cracks are starting to show in China’s labor market as struggling industrial firms leave millions of workers in flux.

Early harvests under China’s Belt and Road Initiative

Ahead of the third anniversary of the China-proposed Belt and Road Initiative, President Xi Jinping has called for more “early harvests” under the framework. China invested a total of 51.1 billion U.S. dollars in Belt and Road countries from autumn 2013 to July 2016, accounting for 12 percent of the total outbound direct investment.

The Chinese (Smartphones) Are Coming

In the next five years, a majority of U.S. consumers will have bought a Chinese-brand smartphone. Such a prospect may raise the hackles of purported American patriots and presidential candidates, but it’s reality. Outside of Apple and Samsung, Chinese brands rule the global smartphone market.

Didi Chuxing Launches Car Rental Unit That Offers Free To-Door Delivery

Didi Chuxing, China’s largest ride share company, says it has launched its own online car rental business through an asset-light model in cooperation with existing leasing companies, says a company announcement.