By Lulu Yilun Chen
The deal is the culmination of more than a year of take-no-prisoners war between the world’s two largest ride-sharing companies, a series of clashes played out in the media and on the dusty streets of hundreds of cities. That battle, waged through massive subsidies on rides, wound up costing Uber $2 billion.
The valuation of the combined ride-hailing company is $35 billion, the people said. Investors in Uber China, an entity owned by San Francisco-based Uber, Baidu Inc. and others, will receive a 20 percent stake in the combined company, the people said. Uber will continue to operate its own app in China for now.
Feagin, one of several Wall Street vets to join Chinese financial institutions in recent years, was hired to help Ant Financial go global. He accepts this won’t be easy and will take time. For now, he’s building ties with foreign banks and companies, looking at potential investments and acquisitions and making sure the international efforts are coordinated with Chinese operations.
The Chinese consortium involved in the deal also includes Ma’s private equity firm Yunfeng Capital, China Oceanwide Holdings Group Co, China Minsheng Trust Co, CDH China HF Holdings Company Limited, and Hony Capital Fund.
Fosun Group said on Saturday it has agreed to buy Brazilian fund manager Rio Bravo Investimentos, in the Chinese conglomerate’s first acquisition in Latin America. Fosun did not disclose the value of the deal, but said in a statement that it expects to take advantage of the “exceptional period of… Read more »
Brewer Anheuser-Busch InBev cleared a major hurdle toward its takeover of SABMiller with regulatory approval from China. China’s ministry of commerce said it had approved the acquisition on condition that AB InBev fulfilled its commitment to sell SABMiller’s stake in Chinese beer joint venture CR Snow.
In two separate financing rounds in China, Focus Media led an $81 million funding round in eSports startup Sport of the Heroes, while CCB International invested in internet education platform Weidong Cloud Education.
Learn Capital, Charles River Ventures, Madrona Venture Group and China’s TCL Corp also participated in the round, which will help Wonder Workshop’s operations reach international markets, with a focus on Asia. The company, with predominant presence in the US, is now expanding into China.
Conditions favoring M&A in Europe — like the cheap cost of funds and relatively low debt outside of financials and resources companies — have been in place for a while, and now growing Chinese interest is a new factor.
The deal comes as Wang, who owns and operates a chain of cinemas in China through Wanda Cinema Line, builds his entertainment business as he braces for a slump in his main property business. In January, Wang bought “Godzilla” producer Legendary Entertainment for $3.5 billion, becoming the first Chinese person to control a major Hollywood film company.