Exclusive: Goldman’s China-Backed Fund Bucks Trade Tensions To Buy U.S. Firm

www.oann.com | 3/28/2019 | Staff
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(Reuters) – Goldman Sachs Group Inc invested money from China’s sovereign wealth fund in a California-based industrial company and is looking for more U.S. deals, three sources familiar with the matter said, even after increased scrutiny from Washington all but stopped U.S.-China deals last year.

The Wall Street bank is managing a private equity fund called China-U.S. Industrial Cooperation Partnership LP, which it launched with state-owned China Investment Corp (CIC) in November 2017 on the sidelines of U.S. President Donald Trump’s visit to Beijing.

Fund - Goldman - Boyd - Corp - Pleasanton

The fund invested alongside Goldman to buy Boyd Corp, a Pleasanton, California-based manufacturer of rubber seals and gaskets, for $3 billion last September, the sources said.

Chinese efforts to invest in U.S. companies have been tripped up over the past year by Washington’s concerns the Chinese were gaining control of sensitive technology or companies that played key roles in the economy.

Reuters - Wednesday - Committee - Foreign - Investment

Reuters reported on Wednesday that the Committee on Foreign Investment in the United States (CFIUS), a U.S. government panel that scrutinizes deals for national security risks, asked the Chinese owner of the dating app Grindr to divest it, spurred on by data privacy concerns.

Goldman successfully argued to CFIUS, however, that its plan to buy Boyd should be allowed to proceed, the sources said.

CIC - Partnership - Goldman - China - US

CIC’s novel partnership with Goldman illustrates how China is adapting to U.S. curbs on its deal-making, which resulted in Chinese acquisitions of U.S. companies plunging by 88 percent year-on-year in 2018, according to financial data provider Refinitiv, as trade relations between the world’s two largest economies deteriorated.

The Cooperation fund was set up expressly to help U.S. companies penetrate the Chinese market. And the fund is touting CIC’s involvement as a strategic advantage in accomplishing this goal.

Marketing - Document - Goldman - Clients - Reuters

In a confidential marketing document prepared for Goldman clients and seen by Reuters, the New York-based bank highlighted CIC’s “efficient sourcing of...
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