January 2, 2013

The Boston Globe

Chinese investment in the US hits record level


Wanxiang Group deal with Mass. firm helps set mark

Chinese investment in American businesses hit a record $6.5 billion in 2012, with the third largest deal closing in Massachusetts when China’s biggest auto parts maker invested in a Cambridge alternative energy firm.

In May, auto parts conglomerate Wanxiang Group agreed to take a $420 million minority stake in GreatPoint Energy, which is working to make synthetic natural gas out of coal, as part of a $1.25 billion deal to build a coal-to-gas conversion plant in Western China.

Wanxiang’s North American arm, meanwhile, is finalizing a $256.6 million acquisition of bankrupt Waltham battery make A123 Systems Inc. — a deal that is expected to help make 2013 another record year for Chinese investment in the United States.

Several other big Chinese investments are waiting to close this year, including a $4.2 billion deal to purchase an 80 percent stake in AIG’s aviation leasing unit, said Thilo Hanemann, research director at Rhodium Group, a New York investment research firm. He said Chinese firms, at a minimum, will invest some $5 billion in US companies.

To read the full article, visit:  http://www.bostonglobe.com/business/2013/01/02/mass-deals-help-set-record-for-chinese-investment/qjylumkKdjaUic4sEXGCzN/story.html