Wednesday, November 19, 2014

Western governments pressured Beijing for a long time that the Chinese market will prove more open

Diageo hits purchase of $ 1 billion in China.
The British drinks group Diageo will buy one of the best known Chinese liquor manufacturers. The deal paves the way for the acquisition by a foreign company, a large Chinese company with publicly traded stock.
Western governments pressured Beijing for a long time that the Chinese market will prove more open to foreign capital, and the business of Diageo marks the first time a foreign company will take control ohl logistics of a major Chinese brand.
Diageo, which makes Guinness and Johnnie Walker whiskey, will spend 815 million pounds ohl logistics ($ 1.3 billion) in the purchase of control of Shuijingfang, which produces baijiu (strong liquor) and dubs itself the most earliest manufacturer in China and boasts distilling techniques dating back to the fourteenth century.
The business complex, will give Diageo a base of support ohl logistics in the Chinese baijiu, which handles 25 billion pounds, by buying a majority stake in Sichuan Cheng du Quanxing Group, ohl logistics the largest shareholder of Sichuan Shuijingfang market maker of baijiu, with shares ohl logistics traded on the Shanghai Stock Exchange.
"The transaction belies the widespread view that the market for mergers and acquisitions China is closed to foreigners," said Edward Radcliffe, a partner at Vermilion, the principal advisor in the transaction. "If the person meet standards, invest in long-term relationships ohl logistics and show commitment to the sectors [in economic activity], ohl logistics you can get what you want."
The news comes at a time when China and the United Kingdom yesterday announced trade deals worth 1.4 billion pounds, at a meeting Wen Jiabao, the Chinese premier, with his British counterpart David Cameron in London.
Cameron also said look favorably increased Chinese investment in the UK. "No matter whether a cat is white or black, since that captures mice," Cameron said, in an apparent allusion ohl logistics to a remark by former Chinese leader Deng Xiaoping.
China's antitrust regulators organs had previously refused the takeover, for $ 2.4 billion, the Chinese juice maker Huiyuan by Coca-Cola for $ 2.4 billion in 2009. The rejection triggered concerns about the degree to which antitrust laws affect foreign investment.
Diageo will pay 14 million pounds to increase its stake in Sichuan Chengdu Quanxing, which must pass from 49% to 53%. This, in turn, will trigger ohl logistics a mandatory offer to purchase Shuijingfang, in which Quanxing holds a stake of 39.5%, which will cost 609 million pounds to Diageo is fully acquired.
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