Sunday, July 26, 2015

Billion fund in China to buy foreign technology –

From Rick Car

Hong Kong – Chinese companies go increasingly in search of international pearl in the technology sector. Now the Chinese venture capital company GSR Ventures has a five-billion-dollar fund that should elicit foreign investment opportunities, as say people familiar with the situation. The Fund shall take such acquisition targets from the technology, Internet and biotechnology industries targeted, for the Chinese market is a key growth driver.

GSR Ventures was founded in 2004 by Chinese technology entrepreneurs and has sharpened in March its international profile by in cooperation with the US venture capital firm Oak Investment Partners, 80 percent of LED components and automotive lighting division Lumileds had taken over from Philips. The deal had a volume of 2.8 billion dollars.

The new action comes at a time when Chinese companies, encouraged by the policies in Beijing, step up efforts to such foreign technologies that will be introduced to China. In many of these fields of technology, such as semiconductor and automotive technology, China is the world’s largest purchaser of end products such as mobile phones or cars.

A particularly ambitious step had already made this month, the Chinese government Tsinghua Unigroup with a 23 billion dollar bid for the US chipmaker Micron Technology. This deal, however, is to be expected with a very thorough review by the US regulators.

Also, companies in the US and Europe are looking for partners who support them in their China business. Many US companies have agreements with Chinese companies and share with them their technology in order to guarantee their sales in China. So Hewlett-Packard has sold 51 percent of their network Equipment business to Tsinghua Unigroup for $ 2.3 billion in May.

In the new style transactions billion fund could be an attractive partner, particularly with a view to its knowledge of China’s technology scene. GSR Ventures has positions in Beijing, Hong Kong and Silicon Valley.

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DJG / DJN / raz

(END) Dow Jones Newswires

July 26, 2015 10:27 ET (14:27 GMT)

Copyright (c) 2015 Dow Jones & amp; Company, Inc.


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