German industrial giant Siemens AG announced on December 7 it would invest 10 billion yuan (US$1.24 billion) in China next year with recruitment of 3000 local employees.

As part of its plan, an Asian medical centre will be set up in Shanghai with an injection of 300 million yuan (US$37 million) for the healthcare manufacturing and research and development complex. Construction of the centre, a 30,000 square meter facility designed to employ 1,000 workers scheduled to open in 2007, will begin next year.

Beer acquisition

The world's largest beer producer InBev has won a fierce bidding war with its global rivals to acquire one of China's largest beer producers, Fujian Sedrin Brewery, for about US$750 million. The Belgian beer giant gained control of the State-owned beer supplier, in East China's Fujian Province, after outbidding Dutch brewer Heineken and US brewer Anheuser-Busch.

Once given government approval, the deal will be one of the largest acquisitions ever for a foreign company operating in China . Fujian Sedrin Brewery produced 720,000 tons of beer in 2004, making it one of the country's top eight brewers.

Purchase deal

Leading South Korean electronics manufacturer Samsung Electronics announced on December 9 a 2006 memo of strategic co-operation with China's largest home appliance chain retailer, Gome Electric Appliances Holding Ltd.

According to the agreement, Gome will place orders for 3.5 billion yuan (US$433 million) worth of Samsung products, covering all of Samsung's product lines. The two firms will co-operate to expand in China and share their information databanks. The 3.5 billion yuan order sets a new record in China for the largest order placed by a home appliance dealership to a single supplier.

Solar giant listed abroad

East China's Jiangsu-based Suntech Power Holdings Co Ltd, one of the world's leading solar energy companies, was hoping to raise US$395.7 million on its IPO (initial public offering) debut in New York, on December 14.

The company raised its price forecast to between US$13 and US$15, up from an earlier range of US$11 to US$13 on December 12. Suntech makes photovoltaic cells and modules used to convert solar energy into electricity. It plans to use proceeds from the IPO to double its manufacturing capacity from the current 120 MW (megawatts).

Aluminium venture

Aluminum Corp of China Ltd (Chalco), the world's second-biggest alumina producer, said on December 7 it would set up a primary aluminium joint venture with a total investment of 2.38 billion yuan (US$293 million) in North China's Shanxi Province.

Chalco will pay 510 million yuan (US$63 million) cash for a 51 per cent stake in the new venture. Its partner Shanxi Guanlu, a local aluminium smelter, will inject 490 million yuan (US$60 million) worth of assets from an existing smelting facility to secure the remaining 49 per cent. The venture, with a total registered capital of 1 billion yuan (US$123 million), will have an annual production capacity of 220,000 tons of primary aluminium.

Non-core unit sale

TCL Corp, one of China's top consumer electronics makers, has signed an asset transfer agreement with Legrand SA, a French specialist in products and systems for electrical installations and information networks, to sell two non-core units for 1.69 billion yuan (US$209 million), according to a statement on December 12.

Legrand, owned by Wendel Investissement, will take full ownership of TCL Building Technology and TCL International Electrical both in Huizhou, South China's Guangdong Province.

Business integrated

China's top oil company, PetroChina, will pay 559 million yuan (US$69 million) to its parent China National Petroleum Corp (CNPC) for its stake in a fuel oil unit.

PetroChina will buy a 35.73 per cent stake in the PetroChina Fuel Oil Co from two wholly-owned subsidiaries of CNPC, increasing PetroChina's stake in the PetroChina Fuel Oil Co to 95.52 per cent, the company said in a statement to the Hong Kong stock exchange on December 7.

(China Daily 12/19/2005 page3)