China’s HNA Group continues on global shopping spree

Source:Global Times Published: 2017/4/3 15:48:44

There appears to be no end in sight for Chinese conglomerate HNA Group's global shopping spree, counting assets in oil storage, real estate, banking and media involving millions of dollars as its latest potential and actual deals.

On Monday, media reports said the group, which also owns Hainan Airlines, has submitted a bid to acquire German bank HSH Nordbank AG. HNA is competing with at least four other bidders for the bank, domestic news portal reported, citing sources familiar with the deals. 

HNA is working with Austrian asset manager C-Quadrat on a bid for the troubled German bank that focuses on financing for shipping, transportation, real estate and renewable energy, according to the report.

Hit by the 2009 financial crisis, HSH Nordbank was taken over by two states in Germany, and according to a deal with the EU, the two states have until February 2018 to sell the bank or shut it down, according to media reports.

Though the details of HNA's bid for the bank remain sketchy, the news highlighted the Chinese conglomerate's vast appetite for overseas assets.

Also on Monday, the Wall Street Journal reported that Glencore, one of the largest oil traders in the world, has agreed to sell a majority stake in its oil storage and logistics business for $775 million.

On March 26, HNA agreed to buy a 25 percent stake in UK's Old Mutual Plc's asset management unit in the US for $446 million, Bloomberg reported, adding HNA has spend $30 billion in overseas deals in 2016.

On March 23, HNA raised its stake in Germany's flagship lender Deutsche Bank from 3.04 percent to 4.76 percent, according to Reuters. The group is Deutsche's third largest shareholder just after the government of Qatar and BlackRock, which owns 10 percent and 6.1 percent, respectively, Reuters said. 

HNA is also reportedly in talks with Forbes Media to buy a controlling stake in the company.

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