Last Friday, Starwood Hotels & Resorts tentatively agreed to a 13 billion USD acquisition offer from Anbang Insurance Group. If the deal is finalized, it will set a new record for the highest transaction price for a Chinese acquisition of a U.S. company. In recent years, Chinese enterprises have embarked on a buying spree, and investors immigrating to the U.S. have begun to turn their capital and focus toward international markets. This year alone, Chinese companies have already spent 103 billion USD on foreign enterprises, including those in the United States. Below, we take a look at the eight largest U.S. companies that have been or are about to be acquired by Chinese firms.
1) Starwood Hotels & Resorts
Transaction Value: 143 billion USD
Acquirer: Anbang Insurance Group
Date: March 14, 2016
This is Anbang's latest hotel acquisition, following their purchase of the parent company of the Waldorf Astoria New York last year. Recently, they also announced plans to acquire a portfolio of hotels from Blackstone. The acquisition of Starwood will add 1300 hotels to Anbang's portfolio.
2) Smithfield Foods
Transaction Value: 71 billion USD
Acquirer: WH Group
Date: May 29, 2013
At the time, Minxin Pei, a professor of government at Claremont McKenna College, noted: "Some believe that this deal by WH Group, a private company from Henan, China, is a masterstroke that will strengthen their ability to supply high-quality pork at higher prices to a rapidly growing market. Others believe the deal is primarily aimed at acquiring valuable hog farming and meat processing technology. Still others worry that WH Group might use Smithfield's channels to sell its own products in the U.S. market."
3) Ingram Micro
Transaction Value: 63 billion USD
Acquirer: Tianjin Tianhai Investment
Date: February 17, 2016
Ingram Micro, ranked 62nd on the Fortune 500, accepted an acquisition offer from a Chinese transportation and logistics company earlier this year.
4) GE Appliances
Transaction Value: 54 billion USD
Acquirer: Qingdao Haier
Date: January 15, 2016
GE Appliances was originally set to be sold to Electrolux, but that deal was blocked by the U.S. government. GE had to abandon the plan and instead signed an acquisition agreement with a Chinese company. Earlier this month, U.S. regulators stated they had completed their review of the transaction but offered no further comments.
5) Terex
Transaction Value: 54 billion USD
Acquirer: Zoomlion
Date: January 26, 2016
This 83-year-old Connecticut-based company primarily manufactures construction, agricultural, and industrial machinery.
6) Legendary Entertainment
Transaction Value: 35 billion USD
Acquirer: Dalian Wanda Group
Date: January 12, 2016
This is the largest Hollywood deal by a Chinese company to date. Legendary has been involved in the production of a series of blockbusters, such as "Jurassic World" and "Straight Outta Compton." Many of the company's films have performed well at the Chinese box office, such as "Godzilla" and "Pacific Rim."
7) Motorola Mobility
Transaction Value: 31 billion USD
Acquirer: Lenovo
Date: January 12, 2014
Computer giant Lenovo integrated its mobile phone business with Motorola. New phones will use the Moto brand. Lenovo has downsized some of Motorola's traditional operations and laid off staff. However, some lower-priced phones have indeed sold well.
8) AMC Entertainment
Transaction Value: 26 billion USD
Acquirer: Dalian Wanda Group
Date: May 20, 2012
At the time of Wanda's acquisition, AMC was the second-largest theater chain in the U.S. However, their 11 billion USD acquisition of Carmike Cinemas earlier this month has made them the largest theater chain.