In the past year, the number and scale of Chinese companies' large-scale acquisitions of foreign capital continued to set historical records. Now US companies have also seized the opportunity to target China.
The Wall Street Journal reported on the evening of March 8 that Air Products & Chemicals (APD) proposed to acquire China ’s largest industrial gas producer Yingde Gas Group Co., Ltd. (referred to as Yingde Gas) for $ 1.5 billion. This price transaction will become the largest deal for American buyers to acquire Chinese companies.
Top 5 Cases of Foreign Investment in Chinese Enterprises Source: Wall Street Journal
According to public information, American Air Products is an industrial gas producer based in Allentown, Pennsylvania. In terms of revenue, Yingde Gas has a market share of about 14% in China's industrial gas market.
A spokesperson for Yingde Gas said that the company was paying attention to the bidding process without commenting. Yingde Gas has said that it is working to open financial data permissions to potential buyers.
Air Products said it does not exclude working with any party to reach a deal. They said in a Tuesday announcement that they believed the merger with Yingde Gas had significant strategic and financial significance, adding that they would continue to participate in the bidding process.
However, the acquisition of Yingde Gas by Air Products requires approval from the Ministry of Commerce of China.