Top 10 overseas Mergers and Acquisitions in 2010 (1-5)

Editor's note:  China's enterprises eye global expansion via mergers and acquisitions (M&As) in 2010 as the country's economic power increases. Although most big deals took place in industries such as mineral resources, energy and power and were conducted by the State-owned companies, some private companies also made inroads in overseas foray. Here we list some impressive investments by Chinese companies in 2010.

1. Sinopec pays $7b for Repsol’s Brazil unit

2. CNOOC buys Bridas stake for $3.1b

3. PetroChina, Shell to acquire Arrow for $3.1b

4. Geely's Volvo buy

5. Chalco invests $1.35b in Rio's Simandou iron ore project

6. Huaneng buys into InterGen

7. PCM acquires GM's parts-supplier unit

8. Ansteel invests in US mill

9. Bright Food inks NZ deal

10.ICBC acquires majority stake in the Thai lender

1. Sinopec pays $7b for Repsol's Brazil unit

A car leaves a Sinopec gas station in Nanjing, Jiangsu province on July 14, 2010. [Photo: Chinadaily.cn]

 

China Petrochemical Corp, also known as Sinopec, which is China's second-largest energy company, agreed to pay $7.1 billion for a 40 percent stake in Madrid-based Repsol YPF SA's Brazilian unit in October, which has reserves in the same area as the biggest oil discovery in the Americas this century.

 

That amounts to $15 a barrel. The investment is the country's the largest overseas acquisition this year.

2. CNOOC buys Bridas stake for $3.1b

 

A woman walks past the entrance of the headquarters of China National Offshore Oil Corp (CNOOC) in Beijing Sept 23, 2010. [Photo: Chinadaily.cn]

 

China National Offshore Oil Company Limited (CNOOC Ltd), China's biggest offshore oil explorer, inked a $3.1 billion deal with Argentina-based Bridas Energy Holdings (BEH) to buy a 50 percent stake in the BEH subsidiary Bridas Corporation in May.

 

The transaction will increase CNOOC Ltd's proven reserves by 318 million barrels of oil equivalent (BOE) and the average daily production to 46,000 BOE, based on 2009 figures.

3. PetroChina, Shell to acquire Arrow for $3.1b

 

 

A petrol delivery vehicle drives past a PetroChina gas station in Beijing, March 25, 2010. [Photo: Chinadaily.cn]

 

PetroChina Company Limited (PetroChina), the country's largest oil and gas producer, agreed to a joint bid with Royal Dutch Shell Plc to buy all shares of Australian coal seam developer Arrow Energy for A$3.5 billion ($3.15 billion) in March.

 

CS CSG (Australia) Pty Ltd, the 50-50 joint venture owned by PetroChina International Investment Company Ltd and Shell Energy Holdings Australia Ltd, paid A$4.70 per share in cash and own Arrow's Coal Seam Gas (CSG) assets in Queensland and domestic power business.

 

Arrow shareholders approved the takeover in July and finalized the deal in August.

4. Geely's Volvo buy

 

Chairman of Zhejiang Geely Holding Group Li Shufu (front left) hugs Ford's Chief Financial Officer Lewis Booth after signing the agreement. [Photo/Xinhua]

 

Zhejiang Geely Holding Group, China's No 10 automaker, sealed a deal in March to buy ailing Swedish luxury car brand Volvo from US giant Ford for $1.8 billion.

 

The deal is China's biggest overseas auto purchase and represents the most ambitious move by a homegrown auto brand. It will offer Geely, a producer with lower-end image, access to a high-end brand and technology it needs to compete with much bigger rivals in China.

 

The acquisition was completed in August.

5. Chalco invests $1.35b in Rio's Simandou iron ore project

 

A security guard stands in position at the headquarters of the Aluminum Corp of China (Chinalco) in Beijing in March 19, 2010.[Photo: Chinadaily.cn]

 

Aluminum Corp of China Ltd (Chalco), the nation's largest metal producer, in July agreed to pay $1.35 billion for a stake in Rio Tinto Group's Simandou iron ore project in Guinea, making its first investment in the commodity.

 

The agreement followed an initial accord on the project with Chinalco, Chalco's State-owned parent, in March. Chalco will acquire a 44.65 percent stake by funding development over the next two to three years.

 

This is Chalco's biggest overseas investment after it pulled a plan in June to develop a A$3 billion ($2.7 billion) bauxite project in Australia.