Evidence That The Crash Is Near—-Chinese Companies Exporting Massive Capital On Global Shopping Spree
by Maureen Farrell, David Stockman’s Contra Corner
TheDailyCoin.com
March 15, 2016
Chinese companies are continuing their U.S. shopping spree. On Monday, the focus was on real estate.
A group led by China’s Anbang Insurance Group Co. came in with a $12.8 billion takeover offer for Starwood Hotels & Resorts Worldwide The buyout offer threatens to upend Starwood’s tie-up with Marriott InternationalAnbang is also near a deal to buy Strategic Hotels & Resorts Inc. from a Blackstone-managed real-estate fund, people familiar with the situation said.
Chinese companies have announced 36 purchases of U.S. companies valued at $39 billion, eclipsing 2015′s full-year record of $17 billion through 114 deals, according to Dealogic. And 2015 broke the record set in 2014, when Chinese buyers spent $14 billion on U.S. acquisitions, Dealogic data shows. The tally for each year includes transactions where Chinese firms took big stakes in U.S. firms, such as the 5.6% stake that Alibaba Group Holding took in Groupon in February.
Globally outbound Chinese M&A activity is closing in on its full-year high. Chinese companies have spent $102 billion to buy companies outside of its borders, just shy of its full-year record set in 2015 of $106 billion, according to Dealogic.
The $43 billion acquisition of Swiss pesticide and seed company Syngentaby government-owned China National Chemical Corp. accounts for a large portion of that volume.
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