Tagalder is active in merger/acquisition in Asia,
North/South America. Tagalder provides services for foreign companies
to acquire, merger or joint-ventured with Chinese companies. Tagalder
also assists Chinese companies to acquire foreign companies, which has
advanced technologies, products and marketing channels.
Tagalder also provides financing for any
merger/acquisition activities. If you are interested in our services,
please email an executive summary to:
merger@tagalder.com
Why China?
Investment bankers are pinning their hopes on a big rise in future
mainland merger and acquisition deals to come to the rescue of a sharp
slowdown in Asian M&A activity. Tagalder is positioned in these big
upcoming events.
Most of the larger Japanese manufacturers look at China as the most
important place for their future investments, the Nikkei Keizai
Shimbun reports on Sunday. The paper surveyed 32 major manufacturers
and 25 of them see China as the most important option for future
investments.
The companies also try to tap into the large consumer market,
companies expect to boom now China has entered the World Trade
Organization (WTO). But the majority sees China rather as a production
base. Most expectations for sales in China are expected from the
Japanese firms working in China.
The production of chemical products for the Japanese market tops the
list, an industry where companies like Asahi Kasei Corp. and Mitsui
Chemicals Ltd are expanding their activities in China.
Food producers also move to China, as the domestic economic crisis in
Japan forces them to look for more cost-effective ways of production.
Japan is already China's largest trade partner, followed by the United
States.
Deregulation and the opening up of the domestic capital market is
rapidly evolving. A handful of foreign companies are awaiting approval
to sell shares to mainland investors. Meanwhile national brokers will
for the first time be allowed to set their own commission fees
starting from May.
Among the first foreign companies expected to get official approval to
issue China's first depositary receipts are Hong Kong listed China
Mobile (H.K.), China Resources Enterprises Ltd., Shanghai Holdings
Ltd. and Beijing Enterprise Ltd., Bloomberg reported on Thursday. With
the depositary receipts investors on the mainland can use the local
Renminbi currency to buy shares of the companies, currently traded in
Hong Kong dollars.
The upcoming possibility is seen as the first step to give the
mainland's 60 million investors access to Hong Kong's stock market,
the news agency writes. The breakthrough is also regarded as a boost
for the depressed financial sector in Hong Kong.
The introduction of the receipts are part of China's measures to
further open up its US$550 billion capital market, in line with its
commitments made to the World Trade Organization (WTO).
In another effort to increase investment in the domestic capital
market, the China Securities Regulatory Commission (CSRC) announced
the nation's 121 brokerages companies can set their individual
commission fees within a certain range from May 1 on, contrary to the
current fixed commission rates, Bloomberg reports on Friday.
The top rate possible to charge on Class A shares reserved for
domestic investors will decrease from 0.35 to 0.30 percent. The top
rate for Class B shares open to domestic and foreign investors remains
0.43 percent.
Unconfirmed stories from other sources suggest China wants to speed up
its financial industries faster for foreign investors than agreed
under the WTO protocols. The insurance sector is said to open 18
months ahead of the agreed three years. Also the banking sector is
expected to open up faster, but no details are known yet.
China has become world's largest consumer of stainless steel,
overtaking the United States and Japan, according to professor Li
Cheng, executive vice president of the China Stainless Steel Council.
Li said that China's conspicuous consumption of stainless steel in
2001 was about 2.25 million tons, while conspicuous consumption in the
US was 2 million tons and in Japan 1.5 to 1.6 million tons.
China's consumption of stainless steel has been growing at an average
rate of 17 percent for the past 10 years, while the world' s average
growth rate has been 4 percent to 7 percent. In 2000 however China's
per capita stainless steel consumption was only 1. 4 kg, while the
world's per head consumption was 4 kg.
Li said China's stainless steel output had been hovering around 300
thousand tons a year for several years since 1990.
The output in 2001 was about 700 thousand tons, but at the same time
1.6 million tons worth 2.2 billion U.S. dollars was imported.
China is expanding its stainless steel production capacity, which will
reach 3 million tons per year in 5 years. The stainless steel industry
will by then be 80 percent self-sufficient.
Li says China Stainless Steel Council has been and would be devoted to
the promotion of the utilization of stainless steel, as well as to
services to and the supervision of stainless steel producers.
Why Tagalder?
Why should you work with Tagalder in your next merger/acquisition
in China? Here are the reasons:
