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Factbox: China M&A activity, energy deals and Brazil investment
LONDON (Reuters) - Chinese refiner Sinopec Group and Spanish oil major Repsol (REP.MC) have agreed to form a $17.8 billion joint venture to exploit Repsol's Brazilian oil deposits, Repsol said on Friday.
Fast-growing, resource-hungry China has invested heavily in mining and oil assets in Latin America and Africa in recent years.
In Brazil, China is on course to be the biggest foreign direct investor in Latin America's largest economy this year.
Below are details on China's M&A activity, recent energy deal approvals, high-profile failed deals and direct investments in Brazil.
CHINA M&A ACTIVITY
* Chinese acquisitions overseas in the last decade totaled $187 billion, accounting for 2.2 percent of the value of all cross-border M&A activity, as of figures available in January.
* In 2009, Chinese outbound M&A reached $42.6 billion, down 42 percent from the record $73 billion reached in 2008 and, despite the drop in value, accounted for a record 7.5 percent of global cross border M&A.
* With $42.6 billion spent abroad in 2009, Chinese companies rank third among the biggest foreign M&A investor nations after the United States and France -- a sharp rise from 12th position over the last decade.
* The majority of Chinese M&A investments overseas are within the Asia Pacific region (53 percent for the decade, 52 percent in 2009). China was the top M&A investor in the region in 2009 (up from 3rd over the decade)
* China was the leading foreign M&A investor in 2009 in Hong Kong and the second-largest M&A investor in both Australia and Canada (up from 7th and 9th position over the decade).
* In 2009, China was the largest M&A investor abroad in Energy & Power and the second largest for Materials.
* PROJECTS AND DEALS:
* Sinopec Group and Spanish oil major Repsol have agreed to form a $17.8 billion joint venture to exploit Repsol's Brazilian oil deposits. Repsol Brasil will undergo a capital hike for more than $7.1 billion that will be completely subscribed by Sinopec to create one of the largest private energy companies in Latin America, owned 40 percent by Sinopec.
Repsol said the deal would cover the cost of developing the Brazilian deposits. The deal still needs authorization from the competition authorities.
* CNPC has started constructing a 20,000 bpd refinery in Chad, northern Africa, following a joint venture deal signed in 2007.
* CNPC's purchase of a stake in Australian gas producer Arrow Energy Ltd. The joint bid with Shell was valued at $3.1 billion.
* CNPC'S purchase of a 35 percent stake of Syria Shell Petroleum Development, a wholly-owned unit of Royal Dutch Shell.
* CNOOC's purchase of a stake in BG Group Plc's Curtis LNG project.
* Shaanxi Yanchang Petroleum's exploration plan for block L31/50 of the Khorat Basin in Thailand.
CHINESE DEALS GONE AWRY
- In 2005 a bid by offshore oil specialist CNOOC (0883.HK) for California rival Unocal fell through in the face of U.S. political opposition; also that year state-owned miner Minmetals failed in a bid for Noranda, the Canadian nickel miner, against a backdrop of labor concern about China's human rights.
- China's state-owned metals conglomerate Chinalco suffered a major setback in 2009 when Rio Tinto (RIO.L)(RIO.AX) spurned its planned $19.5 billion investment in favor of a tie-up with BHP Billiton (BHP.AX)(BLT.L).
- Sinopec Group's plan to boost production at its largest overseas oilfield, Russia's Udmurtneft, was rebuffed by partner Rosneft (ROSN.MM) in 2009.
CHINESE DIRECT INVESTMENT IN BRAZIL
* Wuhan Iron and Steel Co (600005.SS) is investing up to $5 billion to build a steel mill in northern Rio de Janeiro state. It previously paid $400 million for a stake in Brazilian mining firm MMX (MMXM3.SA).
* China's Sinochem Corp won the bidding for a $3 billion stake in a Statoil offshore Brazilian oil field.
* East China Mineral Exploration and Development Bureau agreed in March to pay $1.2 billion for Brazilian iron ore miner Itaminas Comercio de Minerios.
* State Grid, China's biggest electrical utility, agreed to pay $1.7 billion for seven Brazilian electricity transmission companies.
* Automaker Chery Automobile Co. will invest about $700 million to build its first production plant in Brazil, according to media reports.
* Chinese investment group Honbridge Holdings bought an iron ore mining firm in Minas Gerais state for $390 million from Brazilian firm Votorantim.
* Construction machinery maker Sany Heavy Industry (600031.SS) is spending $200 million to build a plant in Sao Paulo.
* Chinese state firm Chongqing Grain Group is seeking to invest $300 million to buy 100,000 hectares of land in the northeastern state of Bahia to cultivate soya.
* China agreed last year to lend $10 billion to Brazil's Petrobras (PETR4.SA) in return for guaranteed oil supply over the next decade.
(Reporting by Jim Bai and Aizhu Chen; Additional writing by David Cutler, London Editorial Reference Unit and Dmitry Zhdannikov; Editing by Alison Birrane)
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