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28 Sep 17. China’s CASC signs credit deal with state bank. The China Aerospace Science and Technology Corporation (CASC) has signed a strategic agreement with the Export-Import Bank of China to support its expansion in domestic and foreign markets. CASC said on 27 September that through the agreement, the bank will provide credit and finance services in support of activities including the development of “high-tech equipment”, exports and foreign trade, major scientific research projects, and civil-military integration.
CASC did not disclose the monetary value of the credit that will be extended to the corporation through the agreement. However, it said, “In the future the Export-Import Bank of China will provide credit and financing support to help China’s aerospace industry develop faster and better.” (Source: IHS Jane’s)
28 Sep 17. Chinese shipbuilders cease share trading as mega-merger rumours grow. Two of three listed subsidiaries operated by the China State Shipbuilding Corporation (CSSC) suspended trading on Chinese stock exchanges on 27 September, signalling a potential merger between China’s shipbuilding giants. The subsidiaries, CSSC Holdings Ltd and CSSC Offshore and Marine Engineering Co Ltd, said to the Shanghai Stock Exchange in separate filings that they have halted trading as they may be involved in “major asset restructuring” undertaken by CSSC in the near future.
Both companies said the move was guided directly by CSSC, although the shares of the group’s other listed subsidiary, CSSC Science and Technology Co Ltd, continued to trade on 28 September. (Source: IHS Jane’s)
27 Sep 17. Blackstone, Apollo team up for Westinghouse bid – sources. Private equity firms Blackstone Group LP and Apollo Global Management LLC have teamed up to bid for the business of bankrupt U.S. nuclear power plant services firm Westinghouse Electric Co, people familiar with the matter said.
A successful deal would limit the financial hit to Japan’s Toshiba Corp, the owner of Westinghouse. Westinghouse filed for bankruptcy in March, hit by billions of dollars of cost overruns at four nuclear reactors under construction in the U.S. Southeast.
Westinghouse is working with investment bank PJT Partners Inc on a sale process, which is still at its early stages, the people said this week. A deal could value Westinghouse at close to $4bn, the sources added.
Other private equity firms are also considering forming consortia to bid for Westinghouse. Buyout firm Cerberus Capital Management LP is in talks with U.S. nuclear power plant component provider BWX Technologies Inc about submitting a joint bid for Westinghouse, the sources said, cautioning that no offer was certain to materialize.
Other bidders are also expected to emerge. However, the Committee on Foreign Investment in the United States (CFIUS), a government panel which scrutinizes deals for potential national security risks, could make an acquisition of Westinghouse by a foreign buyer more difficult, according to the sources.
The sources asked not to be identified because details of the sale process are confidential.
A Westinghouse spokeswoman said the company had started the process to exit bankruptcy through a sale or by securing an investment, but declined to comment on the company’s valuation or potential bidders. Westinghouse has previously said it is hoping to exit bankruptcy early next year.
PJT and BWX Technologies did not immediately respond to requests for comment, while Blackstone, Apollo and Cerberus declined to comment.
Construction of nuclear power plants has slowed down around the world following the 2011 Fukushima accident, and as the cost of renewable power sources plummets.
However, private equity fi