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    The Global Chinese Services Group

China M&A Round-Up

July 3 10, 2009

In this issue:

    China M&A Deals Trend

    Trends to watch

    Chinese Overseas investment and M&A

    Cross-border M&A into China

    Domestic consolidation

    GCSG Webcast of Interest

     Our M&A leadership Highlights of the week:

Lawrence Chia ; CIC to invest US$1.5 billion in Canadian miner Teck Resources Ltd.

    National leader ; COFCO & Hopu Investment Management Co will buy a 20% stake in China Mengniu Dairy for US$790 million.

     ; G-Resources sells US$585.7 million of new shares to buy Indonesia Tony Ng mine. North China leader

    ; Shougang Concord International Enterprises will pay US$249 million to

    increase its stake in Fushan International Energy Group by 9.8%.

Danny Tong Disclaimer

    East China leader Any summaries of, and links to the related news of the M&A transactions

     appearing in this publication (collectively “Material”) should not be Eric Leung construed as any advice, opinion or recommendation given by Deloitte South China leader Touche Tohmatsu CPA Ltd. and/or other Deloitte Touche Tohmatsu member firms, partnerships, companies or their subsidiaries and affiliates

     (“other Deloitte Firms”). No guarantees are made as to the accuracy of Alan Tsoi the Material. In addition, the Material will be limited by the time available

    National M&A Tax Leader and by the information made available to us. No Material herein, implied or explicit, should be perceived as an endorsement, assessment or

     judgment given by Deloitte Touche Tohmatsu CPA Ltd. or other Deloitte Ronald Chao Firms as to the propriety of the transactions. All duties and liabilities GCSG Council Member (including without limitation, those arising from negligence or otherwise) to all parties, including you are specifically disclaimed.

China M&A Deals Trend (May 08 July 09, 2009)

    05/08-05/14 05/15-05/21 05/22-05/28 05/29-06/04 06/05-06/11 06/12-06/18 06/19-06/25 06/26-07/02 07/03-07/09


    Deal Value Deal Value Deal Value Deal Value Deal Value Deal Value Deal Value Deal Value Deal Value Type

    ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)

    Domestic 2352.67 1454.29 2111.27 1731.08 1761.78 4357.73 5499.28 1425.44 3278.42

    Inbound N/A 164.24 N/A 84.2 66.08 37.97 N/A 316.08 139.8

    Outbound 1.32 1.61 271.4 217.45 78.81 N/A 8202.36 N/A 1834.16

(Source: Thomson the above mentioned analysis is representative of both pending and closed deals.)

Trends to watch

    Consumer Business

    07/07/2009 ; Swiss food group Nestle SA (VTX:NESN) may M&A Navigator

    buy Chinese milk producer Hunan Taizinai

    Group. (中文版请点击这里)

    07/03/2009 ; Chinese garments producer Fujian Seven SinoCast Consumer Products

    Brand Group Co., Ltd. is brewing M&As of Beat

    several domestic and overseas garment

    brands, in an attempt to reap more profits and

    further broaden its marketing channel.

Real Estate

     07/07/2009 ; Buoyed by the visit of China's first China Daily

    home-purchase delegation to the US in

    February, a growing number of Chinese

    institutional investors and property firms are

    seeking overseas buying opportunities in the

    real estate sector, but with a much more

    serious and low profile approach.

Back to top

    Chinese Overseas investment and M&A

    Energy & Resources

    07/10/2009 ; China has given approval to PetroChina to Reuters News

    invest in Nippon Oil's Osaka refinery, finalising

    the Chinese state energy giant's second

    overseas refinery takeover. (中文版请点击这里)

    07/06/2009 ; China Investment Corp. (CIC) recently inked a SinoCast Investment &

    contract to acquire about 101 million Securities Beat

    subordinate voting B shares of Canadian

     miner Teck Resources Ltd for US$1.5 billion.


    07/03/2009 ; G-Resources Group Ltd. (HK: 1051) raised Dow Jones International News

    US$585.7 million from selling new shares to

    finance the acquisition of a gold and silver

    mine in Indonesia in a diversification its

    business interests. (中文版请点击这里)

Back to top

    Cross-border M&A into China

    Financial Services

     07/06/2009 ; Italian insurer Generali would acquire a 30% Agence France Presse

    stake in the Chinese asset management group

    Guotai for around US$139 million dollars. (中文


     07/03/2009 ; Commonwealth Bank of Australia (CBA), the China Knowledge Press

    second largest bank in Australia, has raised its

    stake in China Communications Services Corp

    Ltd (HK: 0552) to 10.31% from the previous

    9.96%. (中文版请点击这里)

Telecom, Media & Technology

     07/06/2009 ; Comprehensive Japanese Internet giant DeNA SinoCast Internet & Media Beat

    Co., Ltd. (TYO: 2432) is expected to acquire

    the Chinese mobile phone social networking

    site (中文版请点击这里)

Back to top

    Domestic consolidation

    Aviation & Transport Services

     Datamonitor's Financial Deals 07/08/2009 ; China 3C Group, through its subsidiaries, Yong

    Tracker Xin Digital Technology Co., Ltd. and Yiwu Yong Xin Communication, Ltd., has acquired 100% stake in Jinhua Baofa Logistic, Ltd., a transportation logistics company for US$17.54


     07/03/2009 China Knowledge Press ; Zhejiang HSD Industrial Co Ltd (SH: 600687), which is engaged in the development of real estate as well as the provision of data system integration services, plans to acquire a 100% stake in a Shanghai-based logistics firm valued at US$58.56 million through a private placement. (中文版请点击这里)

    Consumer Business

     07/08/2009 ET Net News ; Emperor International (HK: 00163) said its subsidiary, Worthly Strong, agreed to acquire 10% interest in the Luck United Group from Hidy Investment at US$25.4 million. Upon completion, Emperor International will hold

    55.74% share capital of Emperor Hotel. (中文版


     07/07/2009 South China Morning Post ; COFCO and the private equity fund Hopu Investment Management will hold 20.03% of

    China Mengniu Dairy, the nation's largest dairy after buying shares from the company and shareholders for US$790 million. (中文版请点击


    Energy & Resources

     07/10/2009 South China Morning Post ; Steelmaker Shougang Concord International

    Enterprises said it would pay US$249 million to increase its stake in coking coal firm Fushan International Energy Group by 9.8% to 21.79%.(中文版请点击这里)

     ET Net News 07/09/2009 ; North Mining Shares (HK: 00433) said it agreed to acquire 65% entire equity interests in Jiu

    (中文版请Long Kuang Ye at US$102.72 million.


     07/07/2009 China Knowledge Press ; Huadian Power International Corp Ltd (SH:

    600027) announced that its Shanxi-based

    subsidiary will purchase a 70% stake in each of two coal firms for a total of US$111.26 million.


    Financial Services

     07/08/2009 States News Service ; The government of Macao Special

    Administrative Region (SAR) has approved the merger between Commercial Bank of China (ICBC) and Seng Heng Bank, which was owned by local gaming magnate Stanley Ho.


     07/03/2009 BusinessWorld ; China Banking Corp. (China Bank) is further raising its stake in China Bank Savings, Inc., as

    it prepares to take full control of its subsidiary.

     07/03/2009 SinoCast Banking Beat ; Bank of Communications (HK: 3328; SH: 601328) will buy into China Orient Asset Management Corp. as a strategic investor. (



     07/03/2009 ; Hong Kong-based GP Auto Parts Limited has Datamonitor's Financial Deals agreed to acquire a 50% stake in China-based Tracker

    Shanghai Jinting Automobile Harness Limited from Furukawa GP Auto Parts (HK) Limited for US$11.74 million in cash. (中文版请点击这里)

    Real Estate

     07/09/2009 ; Ting Hsin International Group (THIG) has China Knowledge Press

    purchased a 19.51% stake in Taipei Financial

    Center Corp, which is a real estate company that owns shares in a skyscraper named Taipei 101, from China Development Financial Holding Corp for a consideration of US$113.41

    (中文版请点击这里) million.

     07/07/2009 ; China Aoyuan Property (HK: 03883) said its ET Net News

    subsidiary, China Aoyuan International, agreed to acquire 41.33% issued share capital of Century Profit at US$54.17 million and grant a short term loan of US$67.34 million to Century Profit. (中文版请点击这里)

    Telecom, Media & Technology

    07/09/2009 PR Newswire (U.S.) ; China Security & Surveillance Technology, Inc., a leading provider of digital surveillance

    technology in the P.R.C., signed letters of intent to purchase 100% ownership of Zhejiang Loyal Co., Ltd. and Anhui Guangcheng Technology Co., Ltd. for approximately US$16.1 million and US$2.9 million


    07/07/2009 ET Net News ; Vongroup Limited (HK: 00318) said its subsidiary, VFHC, agreed to acquire and subscribe respectively 11% and 12% of the share capital of Tecroad Hold Co, which

    principally engaged in lithiumion batteries business, at US$15.48 million. (中文版请点击


    07/06/2009 SinoCast Computers & ; VanceInfo Technologies Inc., a leading

    offshore software developer in China, would Electronics Beat

    take over the operating subsidiaries of Hong Kong-based customer relationship

    management (CRM) solutions and call center services provider TP Corporation for an initial consideration of approximately US$1.1 million.


    07/06/2009 ET Net News ; Shanghai Allied Cement (HK: 01060) said its

    subsidiary, Thriving Spring, agreed to acquire

    the entire issued share capital of Year Wealth

    at US$4.64 million. Upon completion, Thriving

    Spring will own an interest of 51% in Xian

    Jinding, which is principally engaged in

    planning, production, publication and

    investment of television drama and film and

    organising cultural and artistic exchange

    activities in the PRC. (中文版请点击这里)

Back to top

GCSG Webcast of Interest

M&A in China A Rough Road Ahead for Cross-Border Automotive Transactions?

    23 July, 10:00 11:00 AM HKT (GMT +8)

    Host: Ronald Chao

    Presenters: Tony Ng and Yi-Wen Qian

No end is in sight for the intense merger and acquisition activity that is reshaping the global

    automotive industry. In this volatile environment, what key challenges and opportunities lay ahead for China-based and foreign companies? We’ll discuss:

     An overview of the current global automotive markets

     Deloitte’s view on the future of the automotive industry

     Snap shot on the China automotive markets

     Challenges on conducting cross-border M&A transactions

    Gain insights on key trends and issues your company should address to prepare for your next automotive M&A transaction.

    Click here to register.


    723, 上午11时半 下午12时半 (香港时间, GMT +8)


    主讲人: 吴兴良及钱以文








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