5 Biggest Chinese Investment in U.S
By Xyla Joelle L. Fernandez
Dec 22, 2016 09:35 AM EST
Dec 22, 2016 09:35 AM EST
The rapid rise in Chinese investments has made some lawmakers nervous. In the past year, 150 Republican and Democrat members of Congress have written letters to the Department of the Treasury, urging stepped up authority for the Committee on Foreign Investment in the United States, or CFIUS. Though Chinese companies are still interested in investing the U.S., growing protectionism in the U.S. under president-elect Trump and more stringent Chinese capital controls could dampen the flood of investment.
As we close out this record-breaking year, here's a look back at the five largest deals by Chinese companies in the U.S. in 2016.
1.Dalian Wanda Acquires Legendary Entertainment For $3.5 Billion
Chinese conglomerate Dalian Wanda Group added to its global entertainment empire back in January with its $3.5 billion acquisition of Hollywood production company Legendary Entertainment.
Legendary was just the latest of a string of entertainment-related acquisitions by Dalian Wanda, which is owned by China's wealthiest man Wang Jianlin. The company bought AMC Entertainment Holdings, the second-largest cinema chain in the U.S., for $2.6 billion back in 2012 and also owns theaters and movie production companies in China. With AMC's pending $1.2 billion acquisition of Carmike Cinemas, Wanda will own the largest theater chain in the world.
2.Qingdao Haier Co. Spends $5.6 Billion To Buy GE Appliance Business
The appliance division of General Electric officially became a part of Haier in June, giving the Chinese appliance manufacturer an opportunity to boost its presence in the U.S. market. Though a behemoth in China, Haier has struggled to gain a foothold in the competitive U.S. consumer market.
3.Tianjin Tianhai Buys Ingram Micro for $6.07 Billion
The deal between Tianjin Tianhai and Irvine, California-based Ingram Micro marked the largest Chinese takeover of a U.S. information technology company.The deal was completed in December after getting through regulatory hurdles both in the U.S. and China. Ingram Micro and Tianjin Tianjin said it would seek approval by the Committee on Foreign Investment in the United States, or CFIUS, in July after initially declining to submit the deal for review.
4.HNA Tourism Group Buys Stake in Hilton Worldwide for $6.49 Billion
Chinese conglomerate HNA in October agreed to pay private equity firm Blackstone Group $6.49 billion for a 25% stake in Hilton. The move was part of HNA's efforts to enhance its "global tourism business." The deal helps both HNA and Hilton grow their businesses in China's fast-growing tourism market both in China and worldwide.
5.Anbang Insurance's $6.5 Billion Deal For Strategic Hotels and Resort.
Anbang Insurance Group completed most of its $6.5 billion acquisition of Strategic Hotels & Resorts in September. The transaction included 15 properties, including JW Marriot Essex House in New York and the Four Seasons in Washington. The seller, private equity firm Blackstone Group, removed one property from the deal after the Committee on Foreign Investment in the United States raised security concerns. The Hotel del Coronado, a landmark hotel located near a major naval base in San Diego, was valued at approximately $1 billion, bringing the final price on the deal to about $5.5 billion.
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