East China’s Jiangsu province has stepped up its efforts for the innovation of the overseas investment modes to ensure that the market entities represented by the public listed companies will get deeply involved in the international division of labor.
In June this year, Sanpower Group, a Jiangsu-based Chinese private conglomerate, acquired Dendreon from an affiliate of Valeant Pharmaceuticals International, Inc of the USA for $819.9 million in cash. This latest acquisition marks the yet another important step towards Sanpower’s global expansion. In 2015, Sampower acquired the UK toy retailer Hamleys and the UK department store House of Fraser.
Yangzhou Cubespace System Furniture Inc. acquired a US office furniture manufacturer with 360 million yuan.
The No.1 Pesticide Company of Nanjing invested 150 million yuan on the acquisition of 70% of the stakes of UK’s New Energy Vehicle.
Since the start of this year, Jiangsu-based enterprises have fulfilled an increasingly large number of overseas mergers and acquisitions through policy guidance, service system guarantee and expansion of overseas channels for merger and acquisitions.
18 overseas mergers and acquisitions were materialized in the first three quarters of this year, compared with 2 in 2013.
The money spent on the overseas mergers and acquisitions have increased from 61 million USD in 2013 to 2.57 billion USD in the first nine months of this year.
High-end manufacturing, energy and environmental protection, infrastructure, retailing and wholesaling are the major sectors that have seen the mergers and acquisitions by Jiangsu-based companies.
In the meantime, Jiangsu-based enterprises have strengthened their economic and trade ties with the countries participating in the Belt and Road initiative by perfecting the comprehensive service platform for the going global strategy, launching overseas trade promotion fairs for major investment and setting up the Belt and Road Investment Fund for mutual benefit and win-win development.
