Thursday, July 30, 2009
In their dream to become a financial capital Shanghai is pushing to create a two-child policy. Shanghai has realized that as the Chinese population is getting older, putting pressure on China's youth and social security system, that it is time to change if they want to become dominant.
Wednesday, July 29, 2009
During this weak economy Europe has probably suffered the most. The number of cross border M&A transactions has plummeted recently, dropping over 80% from this time last year. Domestic and European targeted M&A has also decreased considerably in the past year.
Tuesday, July 28, 2009
An Italian family owned group recently put an offer on the table to acquire Christian Lacroix. This is the first serious bid the company has received since announcing bankruptcy. The struggling fashion house filed suit this year for protection against creditors.
Monday, July 27, 2009
Aetna is reportedly shopping around its pharmacy-benefit management business. Although Aetna has been contacted by several companies it will be awhile before it reaches a deal or even announces negotiations. Aetna expects to earn approximately $2billion from the sale.
CIT Groups is reportedly considering selling off more of its assets. It is believed that they will be selling its aviation and rail-financed operations. The Group has already been approached by buyers, but has rejected all bids.
The Chinese battery and electric car manufacturer BYD in which Warren Buffett's Bershire Hathaway has invested will acquire bus manufacturer Hunan Midea Coach for RMB 60 million. It also plans to build a new plant with a capacity of 400,000 units annually.
Friday, July 24, 2009
Despite China's efforts to create a new international trade currency so as to no longer rely on the weakening US dollar, Zhang XiaoMing of the Bank of Communications Co. has stated that the Chinese Yuan will not be able to overtake the US Dollar in the marketplace for at least another decade. Zhang notes that the Chinese will have to increase the ability to use the Yuan outside of China if the Yuan is to become dominant, which will take quite some time.
Stocks improved globally on the 22nd, reaching new highs for 2009. The Dow increased to over 9000 for the first time since January. This is due in part to the stabilization of the United States housing market and greater than expected corporate earnings. This gives signs of hope that consumers are developing more faith in the market.
Thursday, July 23, 2009
During the second quarter we saw that International Venture Capital Investments took a sharp decline in comparison with last quarter and last year. This quarter fewer deals have been made, with a lower average investment. Europe seems to be getting the worst of it, with the lowest investment rates it has had in decades. There were some improvements from last quarter though as invested capital increased but it is still far from where it was in 2008.
Many of us want to or do believe that China is going to be able to support us out of the recession, but the country’s growth is surely unable to continue at an 8% per year rate when it relies so heavily on exports. Maybe it is time to stop putting such an emphasis on China’s ability to save us. China can’t continue to succeed if the western powers continue to fail.
As the car industry continues to struggle it appears that Porsche is about to be sold to Volkswagen. VW has announced that it will continue its attempts to purchase the luxury car maker despite plans falling through the first time around.
Wednesday, July 22, 2009
By now we all realize that it will take awhile for the American economy to recover but according to Robert Reich the economy will never be the same again and it may take a lot longer than previously expected. We are going to have to completely rebuild it.
Despite the limited demand for solar panels of late, Chinese solar panel company Yingli Green Energy Holding Co has announced that prospects for the industry have been improving leading them to consider the opening of a new plant in the States.
Monday, July 20, 2009
Chinese solar wafer manufacturer LDK (NYSE:LDK) has acquired a 70% equity interest in the Italian systems integrator Solar Green Technology SpA. Solar wafers are the principal raw material used to produce solar cells, devices capable of converting sunlight into electricity. LDK's headquarters are located in Xinju, Jiangxi province, China.
Friday, July 17, 2009
Mergermarket reports that global M&A volume (number of transactions) fell by 47.4% in the first half of 2009 compared with the same period in 2008 and that the value of transactions declined by 43.6%. European deal volume was the most affacted, falling by 66.1%, while Asia-Pacific M&A was less hit.
Thursday, July 16, 2009
Wednesday, July 15, 2009
Tuesday, July 14, 2009
Singapore’s economy has started growing again despite the recession. The country’s second quarter growth proves what many of us have suspected, that Asian countries will be among the first to overcome the current economic turmoil.
This publication by PriceWaterhouseCoopers illustrates our view that it is time for foreign strategic buyers to start exploring the US market. The graphs display that the number of bankruptcies is higher than ever. This may be opportunities for acquisitions. The US labor and bankruptcy laws are less stringent than in Europe for instance. Also, the indication that distress funds are building up financial resources indicates that when the time will come for them to act it will be too late for strategic buyers.
In early June we first learnt about the possible acquisition of Hummer by the Chinese based Sichuan Tengzhong Heavy Industrial Machinery Company. However there is currently some speculation that the deal is in trouble, despite efforts on both sides, due to the possibility that China’s economic planning agency is likely to strike the deal down.