China State Grid Taking Over Europe?

[amoy]

A good move to diversify the investment portfolio >>>

ChemChina To Acquire Pirelli For $7.7 Billion | Wheelers

March 24, 2015

Italian tire manufacturer Pirelli may soon belong to the Chinese as the state-owned China National Chemical Corp (ChemChina) is poised to buy out the 143-year-old company. According to a report by Reuters, Pirelli's top shareholders have already agreed to the deal, estimated to be worth €7.1 billion (US$7.7 billion). Reuters reports the number excludes Pirelli's net debt, which the company's preliminary 2014 fiscal report lists at €980 million.

ChemChina's tire producing division, China National Tire & Rubber (CNRC), will acquire a 26.2% stake in Pirelli from Italian holding firm Camfin for €15 a share. CNRC will then launch a takeover bid for the remaining shares. ChemChina says it will maintain Pirelli's current management team and operations while adopting a new business growth strategy.

"The partnership with a global player like ChemChina, through its affiliates, represents a great opportunity for Pirelli," says Marco Tronchetti Provera, Pirelli chair and chief executive officer. "CNRC's approach to business and strategic vision guarantee Pirelli's development and stability."

CNRC is China's leading manufacturer of steel radial and off-road tires. The acquisition would give ChemChina access to Pirelli's premium tire technology. The deal would also give Pirelli a foothold on the Asian market, giving it an edge against competitors Michelin and Continental.

"We are delighted with the opportunity to team up with Mr. Marco Tronchetti Provera and his team to continue to build together a world class organization and a market leader in the global tire industry," says Jianxin Rin, ChemChina chair.

The transaction is still subject to regulatory approval by both Italian and Chinese authorities.

Pirelli's preliminary 2014 fiscal report estimates net sales of €6.018 billion. Though the company claims a debt of approximately €980 million, that is a marked improvement from a debt of €2.0 billion reported after the first three quarters of 2014.

 

[Ray]

The interesting point is will the West allow it to be taken over by China?

Economically, it appears so.

Scandinavia is ideal for the picking since it is a socialist set. Ideologically closer.

Britain is dead beat and like a gasping beached whale helpless and yet like the beached whale living in fond delusion of it greatness.

France is too chauvinist to give up the ship.

And German will never allow anyone to dominate them.

East Europe, Greece and Italy. being parasitical will fall to the highest bidder.

China will rule Europe or a great part of the same with its inroads into Europe financially and thus controlling their economy.

China is archetypal of the Jews of medieval Europe. Not liked, but their money liked and subtle control that was inevitable most disliked.

 

[Bangalorean]

I see this as a very positive move. I hope India lives up to expectations in the next 5-10 years w.r.t. economy (growth forecast for this year has been revised to 8%), and I hope India can undertake similar acquisitions in the next decade at least. We were in a golden period in 2005-8 timeframe, and India was touted to be the next big thing. When Tata became Britain's largest employer (after all the acquisitions), when Bharti Airtel was grabbing telecom space in Africa, etc. etc. it appeared that nothing could stop India's rise. We wasted 5 precious years due to Congress/UPA assholism and the global economic crisis.

 

[amoy]

Geely to invest $372m on new London Taxi facility

"This investment will secure the future of London Taxi Co. Today's announcement symbolizes the close business links between China and the UK, which is an attractive market for Chinese investment," said Li Shufu, founder and chairman of Geely.

"The London Taxi expansion will show how we can harness our resources, industrial knowhow and technology to produce an environmentally friendly next-generation London Black Cab," Li said.

This is a ten-fold increase on capacity at the company's existing site, which has been home to the London Taxi Company for almost 70 years.

"Geely's 250 million pounds investment and the creation of up to 1,000 jobs is great news for Coventry and a vote of confidence in our long-term economic plan to back business, create jobs and secure the recovery," British Prime Minister David Cameron said.

"The London Black Cab is iconic around the world and I am pleased that the next generation will have a state-of-the-art production facility in the UK," Cameron said.

"Britain is one of the most open and attractive economies. Chinese investment is welcomed and it is good for China and for Britain interms of creating jobs and livelihoods. Over the time these taxis will be seen being exported all over the world," Cameron added.

Geely's commitment to the London Taxi Company marks the largest ever greenfield investment in the UK by a Chinese company and is being backed with funding from the UK government's regional growth fund and other UK and local government support.