Chinese companies closed 12 M&A deals in overseas energy and mining sectors during the second quarter of 2008 -11 more than last month - due to the rising price of resource products, according to ChinaVenture's latest report.
Chinese companies completed 35 overseas purchases during the second quarter. Of these, energy and mining sector purchases were the most valuable and the most numerous.
According to the report, Chinese purchases in these sectors amounted to more than US$3.2 billion, representing 55 percent of all overseas purchases.
Due to surging energy prices, integrating with the upstream industrial chain has become a key strategy for some domestic enterprises to achieve strategic resources and a secure supply.
A number of Chinese energy and mining companies like Sinosteel Corporation and the China Metallurgical Group Corporation participated in overseas M&A activities during the second quarter. One-third of acquired companies are located in Australia.
For more details, please read the full story in Chinese:
(http://www.morningpost.com.cn/article.asp?articleid=139254).
(China.org.cn by Yan Pei, July 22, 2008)
