IN BRIEF

Deals

Youku to buy video rival Tudou

Online video site Youku Inc is planning to acquire its smaller competitor Tudou Holdings Ltd in a $1 billion stock deal that will help lower costs for licensing and transmitting content.

Holders of Tudou's American depositary receipts will receive 1.595 ADRs of Youku for each Tudou ADR they own, the two companies said in a joint statement on March 12.

Based on Youku's March 9 closing price, the deal values Tudou at $39.89 a share, or 159 percent more than last week's closing price.

The transaction requires Youku and Tudou shareholders' approval and is likely to be completed in the third quarter, the two companies said.

On completion, Youku shareholders will own 71.5 percent of the combined company, to be named Youku Tudou Inc.

Insurance

PICC aims to list in Shanghai, HK

State-owned insurer People's Insurance Company of China Group hopes to complete a dual listing in Shanghai and Hong Kong this year, chairman Wu Yan said.

PICC's offering, expected at around $5 billion to $6 billion according to sources, comes amid and expected flurry of activity in China's financial services industry over the coming months as companies look to raise funds to bolster their balance sheets.

Wu said PICC is speeding up preparations for the listing and hopes to list earlier if the window is right.

PICC, the parent of China's largest property insurer PICC Property & Casualty Co, started a series of road shows around the world in July to attract strategic investors.

Finance

Japan to buy Chinese government bonds

Japan has got the permission from China to purchase 65 billion yuan ($10.3 billion, 786.2 million euros) worth of Chinese government bonds, Japanese Finance Minister Jun Azumi said.

It is the first time that the Japanese government has announced the specific figure of its permitted allotment of Chinese government bonds. Azumi told reporters that the size was "appropriate" in view of the strengthening economic ties between the two countries.

During Japanese Prime Minister Yoshihiko Noda's visit to China last December, the two sides had reached consensus on Japan's purchase of Chinese government bonds.

Azumi said it depended on market conditions as to when to start buying.

Chemicals

Monsanto, Sinochem in alliance talks

A unit of Sinochem Corp, a major State-owned agrichemicals conglomerate, is in talks with the US-based crop-biotechnology company Monsanto Co about cooperation in tapping China's vegetable-seed market, said group president Liu Deshu.

Liu confirmed that Sinochem's seed division, China National Seed Group Co, is discussing cooperation with Monsanto, but declined to elaborate further, and it remains unclear what form the cooperation will take.

Investment

Fosun poised to invest overseas

Fosun International Ltd, a privately owned conglomerate, is planning a series of overseas investments this year in countries such as Germany, Britain and Japan, chairman Guo Guangchang said.

Guo said Fosun is looking closely at investment opportunities in companies with advanced technology in Germany and Britain, as Europe's economic woes have led to "attractive valuations" for many companies in the region.

He also expressed interest in Japan's tourism and culture sector, which is being boosted by an influx of Chinese tourists.

ABB to press ahead with long-term plans

The ABB Group, a power and automation technology company, doubled its investment in China in 2011 despite the country's slowing economy, and says it plans to keep investing at a similar pace to pave the way for its own long-term growth.

The Swedish-Swiss company released its 2011 financial results for China, showing that its revenue in the country was $5.1 billion for the year, a record increase of 21 percent from 2010. ABB also set a record in annual investment by putting $230 million into the country, more than double the amount of the previous six years.

Energy

Shaanxi Coal sets sights on Australia

State-owned energy and coal chemical firm Shaanxi Coal and Chemical Industry Group Co plans to invest in an Australian coal mine, group chairman Hua Wei said.

"We are currently conducting geological exploration in the coal mine (in Australia)," Hua said.

The investment will be carried out with other energy companies based in Northwest China's Shaanxi province, according to a source close to the matter.

Retail

Hermes left holding the bag in trademark

High fashion brand Hermes has found itself holding the bag after a Beijing court ruled its Chinese-language trademark is legally owned by a clothing maker from Guangdong province.

Paris-based Hermes International registered the English trademark Hermes in China as early as 1977, but never applied for the Chinese version.

The oversight resulted in a long-running dispute with Dafeng Garment Co from Foshan, which registered a Chinese-character trademark in 1995 that is pronounced the same as Hermes' Chinese name but with a slight difference in its written form.

China Daily-Agencies