Stay off big stake to avoid setbacks
By Richard Fu |
October 29, 2012, Monday
|
Print Edition
Print Edition
CHINESE companies don't always have to seek a controlling stake in overseas acquisitions if they want to avoid political setbacks, the president of China's sovereign wealth fund said.
"We feel Chinese (firms) are too aggressive in overseas investments," Gao Xiqing, president of China Investment Corp, said. "This would make people sensitive in industries that are not that sensitive."
Chinese companies have been buying assets overseas in industries from energy to dairy to meet rising demand over the years, which also triggered national security concerns in some countries.
For instance, China's top offshore oil producer CNOOC Ltd in 2005 abandoned a US$18.5 billion bid to buy California-based Unocal because of opposition on sovereignty grounds from US lawmakers. CNOOC is now awaiting Canadian regulatory approval for its US$15.1 billion takeover of Nexen Inc.
CIC, created in 2007 to enhance returns on China's foreign exchange reserves, usually limits its stake purchases at below 10 percent in overseas acquisitions, Gao told the 9th China International Finance Forum yesterday.
CIC has long said that it's a purely financial investor and doesn't seek to control any company or industry.
"We feel Chinese (firms) are too aggressive in overseas investments," Gao Xiqing, president of China Investment Corp, said. "This would make people sensitive in industries that are not that sensitive."
Chinese companies have been buying assets overseas in industries from energy to dairy to meet rising demand over the years, which also triggered national security concerns in some countries.
For instance, China's top offshore oil producer CNOOC Ltd in 2005 abandoned a US$18.5 billion bid to buy California-based Unocal because of opposition on sovereignty grounds from US lawmakers. CNOOC is now awaiting Canadian regulatory approval for its US$15.1 billion takeover of Nexen Inc.
CIC, created in 2007 to enhance returns on China's foreign exchange reserves, usually limits its stake purchases at below 10 percent in overseas acquisitions, Gao told the 9th China International Finance Forum yesterday.
CIC has long said that it's a purely financial investor and doesn't seek to control any company or industry.
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