Thursday, June 25, 2009

"China Inc." Deal Premiums.......

Another way to recyle the greenback.... The race to hard assets is speeding up.....Unfortunately China´s deal ethics are more than often non existent & inhuman ( see Oil for China, Guns for Darfur / China and Sudan Fact Sheet ) UPDATE: Says China should buy gold, natural resources, U.S. land

Auch ein Weg wie man die ungeliebten und im Überfluß vorhandenen US $ Bestände wiederverwerten kann..... Die Flucht in Hard Assets wird weltweit sicher noch zunehmen.... Wenig überraschend ist China auf dem Weg zum Ziel im Zweifel jedes Mittel recht ( siehe Oil for China, Guns for Darfur / China and Sudan Fact Sheet ).....UPDATE: Says China should buy gold, natural resources, U.S. land

[Sinopec photo and charts]

Is China Inc. Overpaying in Its Merger Deals? WSJ Deal Journal
Deal makers know that to succeed you have to make your assets speak louder than your liabilities. China Inc. is learning that lesson.

Just look at Sinopec’s bid to acquire Swiss oil company Addax, which has a big presence in Africa. The price that China Petrochemical Corp., the Chinese state-owned oil company known as Sinopec, is offering is much higher than usual for the sector, analysts say.

Sinopec’s offer is equivalent to $34 a barrel of proved reserves and $14 a barrel of proved and probable reserves. The African transaction average in 2007, when the average crude price is similar to current prices, was $14.40 a barrel for proved reserves and $9.90 for proved and probable reserves, respectively. On a proved basis, the 2007 average suggests $3.1 billion total value for the deal. Therefore, $7.2 billion implies a 135% premium.

The deal also shows China’s willingness to take risks, as Sinopec would gain a presence in oil-rich but politically sensitive Iraqi Kurdistan as well as offshore West Africa, one of the hottest sectors of the oil world but one that includes Nigeria, where local militants continually harass drillers.

Already this year, Chinese companies have notched 10 deals in the oil & gas space. The total number of oil & gas deals in all of last year was 14

[Sinopec]

This Sinopec deal, if completed, would be the largest overseas takeover in China’s M&A history in natural resources The deal also would boost the value of Chinese oil & gas mergers and acquisition to $12 billion, up 80% from the same period last year.

> Add this number to the mix ( via WSJ )

> Um das Bild abzurunden sollte man die nachfolgende Summe ebenfalls miteinbeziehen.....
Over the past half-year, China has proffered more than $45 billion in loans to Russia, Brazil, Venezuela and Kazakhstan in exchange for long-term crude supplies.
> Very unlikely that this trend will reverse course......

> Wenn man jetzt noch die Reaktion der kommenden "Elite" mit berücksichtigt halte ich es für extrem unwahrscheinlich das sich dieser Trend demnächst ändert...... :-)

Dennis Gartman
As we reported here, Geithner’s attempts to reassure Beijing authorities that the US government was still upholding a strong US dollar policy were met with loud laughter by an audience of students at Peking university.

Got GOLD....?

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4 Comments:

Blogger jmf said...

China Reiterates Call for New World Reserve Currency
June 26 (Bloomberg) -- China’s central bank renewed its call for a new global currency and said the International Monetary Fund should manage more of members’ foreign-exchange reserves, triggering a decline in the U.S. dollar.

“To avoid the inherent deficiencies of using sovereign currencies for reserves, there’s a need to create an international reserve currency that’s delinked from sovereign nations,” the People’s Bank of China said in its 2008 review released today. The IMF should expand the functions of its unit of account, Special Drawing Rights, the report said.

The restatement of Governor Zhou Xiaochuan’s proposal in March added to speculation that China will diversify its currency reserves, the world’s largest at more than $1.95 trillion. Chinese investors, the biggest foreign holders of U.S. Treasuries, reduced holdings in April after Premier Wen Jiabao expressed concern about the value of dollar assets.

6:25 AM  
Blogger jmf said...

"China, Russia pipeline to be in operation at end of 2010

An oil pipeline linking Russia's far east to China's northeast is set to start operation by the end of 2010, Zhou Jiping, deputy general manager of the China National Petroleum Corp. confirmed at a conference Thursday.

The pipeline would run from Skovorodino, Russia to China's northeastern city of Daqing.

Construction will start at the end of this month, according to earlier reports.

The pipeline will transport 15 million tonnes of crude oil annually from Russia to China from 2011 to 2030.

China and Russia signed seven energy cooperation agreements in February, which included the pipeline construction project, a long-term crude oil trading deal and a financing plan between the China Development Bank and the Russia Oil Pipeline Transport Company."

(Xinhua News Agency April 24, 2009)

10:22 AM  
Blogger jmf said...

China, Brazil reported planning currency trade deal Marketwatch

The PBOC has already arranged six bilateral currency swaps since December with countries including Malaysia, Argentina and Hong Kong, the Reuters report said, allowing those countries' central banks to lend yuan to their domestic importers to pay for Chinese shipments.

8:30 PM  
Blogger jmf said...

Chinese approach Repsol YPF
FT Alphaville

Two of China’s biggest oil groups have approached Repsol YPF, the Spanish oil company, over possible asset purchases and joint ventures worth billions of dollars. Repsol is discussing a possible sale of its 75% stake in YPF, the Argentine company that accounts for two-thirds of the Spanish group’s oil production, to CNPC, parent of listed PetroChina, in a deal that could value YPF at $17bn.

10:02 PM  

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