Overview of most notable mergers
According to data published by Forbes, the top five biggest deals made by Chinese companies in the US in 2016 were:
HNA Tourism Group bought stake in Hilton Worldwide
In order to boost its global tourism business, China’s tourism major, HNA Tourism Group, bought a 25% stake in Hilton Worldwide (HLT) from the Blackstone Group. The deal value was $6.49 billion and was executed in October with the expected close date in early 2017.
Tianjin Tianhai bought Ingram Micro
Tianjin Tianhai, part of the HNA Group conglomerate, had initially announced the purchase on Ingram Micro in February 2016 for $6.07 billion. The deal, which became the largest takeover of a US information technology firm by a Chinese company, was not completed until ten months later in December 2016. The reason for the delay was regulatory bottleneck faced in both countries.
Qingdao Haier Co. bought GE Appliances
China’s appliance major Haier acquired GE Appliances in June 2016 for $5.6 billion. The acquisition will allow Haier to expand its footprint in the US where it has found the competition quite intense.
Anbang Insurance acquired Strategic Hotels and Resorts
An insurance major from China, Anbang bought 15 properties from Strategic Hotels and Resorts for $6.5 billion. However, after the Committee on Foreign Investment in the United States flagged security issues with one property located near a naval base in San Diego, the property was subsequently removed from the aquisition. This led to the deal value declining by $1 billion.
Had the complete deal been executed, it would have become the second biggest acquisition by a Chinese firm in the US after Shuanghui International’s purchase of Smithfield Foods’s for $7 billion in 2013.
Dalian Wanda acquired Legendary Entertainment
Dalian Wanda Group kicked off the big ticket acquisitions of US companies by Chinese firms in 2016 by acquiring Hollywood production company Legendary Entertainment for $3.5 billion in January.
In 2012, Dalian Wanda had acquired AMC Entertainment Holdings – then the second largest movie theater chain in the US. If AMC’s planned acquisition of Carmike Cinemas goes through, Wanda would then become the owner of the largest movie theater chain in the world.
In the next article, let’s assess whether this buying spree can continue into 2017.