Chinese seek takeover logistics and transport targets in Estonia
30.11.2009 (13:12)
Chinese businessmen are believed to be looking around in Estonia for possible acquisitons in logistics and transport business.According to information available to Äripäev, the Chinese have offered Estonian businessman Anatoli Kanajev 100 million euros for his holding in Transiidikeskuse that operates in Port of Muuga and specialises in oil transit trade. Estonian businessmen are expected to travel to China in early December to sign the deal.
Recently also The Economist reported that China was potentially considering acquiring Estonian Air from SAS. Minister of economic affairs Juhan Parts has admitted that Chinese representatives have expressed interest towards the ailing.
Indrek Erikson from the Estonian Embassy in Bejing said that although at first sight the acquisition of Estonian Air would not be profitable, one should look at it from a long-term perspective. "Think how China has developed in the last 30 years and where it can be in the next 30 years," he said.
"Chinese never rush when they make investments, but you can be sure that they have considered every detail. This is the way they do things," said one Estonian businessman.
"China has currency reserves of over 2 trillion dollars," said Erikson, adding that Estonian companies are only one example of how China has expanded its global presence in recent years.
"For Chinese goods the best way to reach Northwest Russia is through Estonia," said Ain Kaljurand, CEO of Port of Tallinn. A Chinese delegation of 60 people visited Tallinn in early November including vice prime minister Zhang Dejiang.
By the end of the first half, Chinese companies have invested 114 million kroons in Estonia. There are about ten companies which are co-owned by Chinese.
Goldman Sachs said recently that China would become the world's largest economy by 2026. By GDP, China is now third largest, ahead of Germany and behind only of Japan and US.
Chinese companies in Estonia include OÜ Ekroom, OÜ Bohai Rahvusvaheline Kaubandus, OÜ Novaville, OÜ McKinley Europe, Transmitter OÜ, OÜ Ronghua,
Opto LED Baltic OÜ, Finix Partners OÜ, OÜ BIORONA and Estonian CITIC Overseas Investment.
www.balticbusinessnews.com
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