China M&A Wrap for the Week of 14 July 2010

July 14 – Sierra Leone-based African Minerals said Shandong Iron & Steel Group agreed to pay $1.5 billion for a 25% stake in its Tonkolili iron ore mine, which is estimated to supply Shandong 10 million tons of iron ore at discounted prices a year.

July 13 – Four Chinese firms led by Fosun International (HKG: 0656) are reported to be in talks with AIG for a joint bid for AIA.

July 13 – Prada denied Shanghainese businessman Lu Qiang had cumulatively acquired 13% of the Italian luxury retailer over the past two years. Lu said he had yet to comment on the news.

July 12 – China Life Insurance Co (NYSE: LFC, SHA: 601628, HKG: 2628), the nation's biggest insurer by market value, will spend almost ¥3.2 billion ($1 = ¥6.8) subscribing to 4.65%, or the largest share, of the Shanghai portion of Agricultural Bank of China's IPO.

July 10 – Hunan Talkweb Information System Co (SHE: 002261) said it plans to found a ¥30 million joint venture in Beijing with Hunan news portal Rednet. Talkweb will spend ¥14.7 million on the registered capital for a 49% stake.

July 9 – GM was reported to have sold Nexteer – a steering system business – to Beijing city government-controlled Pacific Century Automotive System Co for $450 million.

July 9 – Chinese computer accessory maker Logitech said it will acquire Paradial, a Norwegian online teleconference solutions provider. No financial details were disclosed.

July 9 – US carmaker ZAP said it has acquired a 51% stake in Zhejiang-based Jonway Automobile for $29 million. ZAP has the privilege to take over the remainder by 30 March 2011. The deal is pending government approval.

July 9 – The9 Ltd (NASDAQ: NCTY) said it will take a strategic minor stake in California-based mobile game platform Aurora Feint.

July 9 – The value of China-involved mergers and acquisitions amounted to $83.6 billion in the first six months of the year making up 8.1% of the world's total, according to UBS Securities. Foreign acquisitions of Chinese firms were worth $41.9 billion, Chinese acquisitions of foreign firms $32.4 billion and acquisitions between Chinese firms $9.3 billion.

July 8 – Carlyle Group has acquired 11.3% of C. P. Pokphand Co (HKG: 0043) for $175 million from Charoen Pokphand Group, Thailand's largest agricultural company. C.P. Pokphand is one of China's largest animal feed makers.