A unit of Chinese conglomerate HNA Group (海航集團) has agreed to buy Carlson Hotels Inc, which owns brands including Radisson and Country Inns and Suites, the latest in a flurry of overseas investments by Chinese companies.
HNA Tourism Group (海航旅遊集團) is to acquire all of Carlson Hotels, the companies said in a joint statement released late on Wednesday that did not disclose the purchase price.
They said that Carlson’s headquarters would remain in Minnetonka, Minnesota, after the deal is completed.
HNA Tourism chairman Bai Haibo (白海波) said buying Carlson Hotels would help the Chinese company “establish our presence in the US market and expand our footprint in hospitality internationally.”
Bai said that HNA would “accelerate growth by investing substantially in the business.”
The purchase is the latest in a string of global transactions by Chinese companies as they diversify abroad to counter slowing growth at home while also scooping up foreign expertise and technology.
Other deals this year include Haier Group’s deal to acquire the home-appliance business of General Electric Co, conglomerate Wanda Group Co’s (萬達集團) purchase of Hollywood studio Legendary Entertainment, and state-owned China National Chemical Corp’s (中國化工) mammoth US$43 billion bid for Swiss pesticide maker Syngenta AG. It also comes weeks after China’s Anbang Insurance Group Co (安邦保險集團) was thwarted by Marriott International Inc in its attempt to acquire Starwood Hotels & Resorts Worldwide Inc.
As part of the Carlson Hotels deal, HNA is also to acquire a 51.3 percent stake in Brussels-based Rezidor Hotel Group AB, which operates Carlson hotels in Europe, Africa and the Middle East.
According to Swedish takeover rules, HNA is required to either buy the remaining shares of Rezidor it does not own or sell its stake down to 30 percent.
Carlson has 1,400 hotels in 115 countries and territories and employs about 90,000 staff worldwide.
HNA Group, based in Hainan Province, operates hotels, airlines, airports, financial services and real-estate businesses.
The deal is subject to regulatory approvals and is expected to be completed in the second half of this year.
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