IN BRIEF (Page 14)

Retail

Yum! Brands sales hit by government probe

Yum! Brands Inc, owner of the KFC fast-food chain, said fourth-quarter same-store sales fell more than projected in China as demand took a hit from a government investigation into one of its former chicken suppliers.

Industry experts had predicted the negative impact of the probe.

KFC sales in China in the last two weeks of December were affected by the adverse publicity associated with the probe into Chinese poultry suppliers, the US company said in a filing with the United States Securities and Exchange Commission on Jan 7.

China same-store sales fell by 6 percent year-on-year in the fourth quarter, compared with a previous estimate for a decline of 4 percent, the filing said.

Apple CEO makes second visit to China

Apple Inc's CEO Tim Cook visited China on Jan 8 and met Miao Wei, head of the Ministry of Industry and Information Technology to discuss the development of China's information technology industry, global mobile communications and Apple's business in China, according to a statement posted on the ministry's website.

This was Cook's second visit to China in less than 10 months. In March last year, the Apple CEO pledged "greater investment" in the world's largest market for computers and mobile phones.

Energy

African oil flows shifting to Asia

Oil shipped to China from West Africa will rise again in 2013, hastening a shift in trade flows to Asia from the Atlantic region as United States crude imports fall further, according to Arctic Securities ASA.

China will boost imports of West African crude by 18 percent in 2013, above last year's 16-percent gain, according to the Oslo-based investment bank. That will offset a predicted drop in US seaborne imports, lifting global ton-mile demand for oil tankers by an estimated 3.4 percent even as the amount of crude carried at sea remains stable and the fleet expands, Arctic said.

Chinese company buys into US shale oil, gas

A private Chinese company, Lanzhou Haimo Technologies, signed a deal with Houston-based Carrizo Oil & Gas to buy into the American company's shale oil and gas assets in Colorado. It marks the first investment by a private Chinese company into shale oil and gas exploration in an American oil field.

Under the agreement, signed in Beijing, the Chinese company will pay $27.5 million (21 million euros) for a 14.3 percent stake in Carrizo's Niobrara shale oil and gas assets. These include 6,000 acres located primarily in Weld and Adams counties in Colorado, as well as oil and gas wells and associated infrastructure.

Haimo Technologies is a world leader in well testing services, and is listed on the Shenzhen Stock Exchange's Growth Enterprise Market. NASDAQ-listed Carrizo holds 60,000 acres (24,291 hectares) in the Niobrara basin, and produces 1,850 barrels of oil-equivalent per day.

Barrick Gold ends talks to sell African unit

Barrick Gold Corp, the biggest producer of the precious metal, said it has ended talks with China National Gold Group Corp regarding the sale of its African unit.

"We are approaching this in a prudent and disciplined manner and will only proceed with opportunities that generate acceptable value," said Barrick CEO Jamie Sokalsky. "African Barrick Gold's assets hold significant potential, and we will continue to look for ways to best realize that value for our shareholders."

Sokalsky, who replaced Aaron Regent in June last year, is reviewing his company's assets in an effort to improve returns and cash flow as costs soar.

ArcelorMittal deal fuels iron ore stock rally

The $1.1-billion (8.4 billion euros) purchase of a stake in ArcelorMittal's Canadian iron ore unit by China Steel Corp and Posco increased interest in Canada's ability to meet Asian demand for the steelmaking raw material.

Champion Iron Ore Mines Ltd, Alderon Iron Ore Corp and Labrador Iron Mines Holdings Ltd surged on Jan 2 in Toronto after Taiwan-based China Steel and South Korea's Posco led a group that agreed to buy 15 percent of ArcelorMittal Mines Canada Inc.

The deal, the second-biggest in the Canadian iron ore industry, gives the Asian steelmakers' group access to deposits generating about 40 percent of the country's production of the commodity, Luxembourg-based ArcelorMittal said on its website.

Auto

BYD gets EU license to sell electric buses

BYD Co Ltd, a Chinese maker of electric cars and batteries, said that it has received permission from the European Union to sell electric buses in all of the bloc's member countries, car information website auto.gasgoo.com reported.

The EU granted the Whole Vehicle Type-Approval to BYD, which means that the Chinese automaker is allowed to sell electric buses in all of its member countries, without the need to gain individual approvals from every member country.

On Dec 11, BYD signed an agreement with Bulgaria's Bulmineral to establish an electric bus joint venture - Auto Group Motors - with each company holding a 50 percent stake in the venture. This is the first electric bus joint venture in Europe and is also the first one established by BYD in the overseas market.

Volkswagen arm buys Shanghai leasing firm

The German automaker Volkswagen's service arm Volkswagen New Mobility Services Investment Co Ltd said on Jan 7 that it had acquired Shanghai Zhenlang Transportation Equipment Leasing Co and will officially establish car rental operations across China.

The company's General Manager Peter Tempich says after the first step of the acquisition, the company plans to set up car rental stations in all major cities of the country, providing long-term rental and leasing services for corporate clients.

Peugeot Citroen China JV sales hit 440,000

Dongfeng Peugeot Citroen Automobile Co Ltd in Central China's Hubei province said it sold a record-high 440,000 cars last year.

In a press release, the 50-50 joint venture between Chinese carmaker Dongfeng Motor Corp and French carmaker PSA Peugeot Citroen said it sold 223,800 Citroen autos and 216,200 Peugeot autos last year.

The joint venture's sales jumped 8.2 percent year-on-year, outperforming the industry average.

Investment

Carlyle sells final stake in CPIC

Carlyle Group, one of the world's largest private equity firms, has sold its remaining stake in China Pacific Insurance (Group) Co Ltd in a deal valued at $793 million (606 million euros).

Carlyle began selling its stake in the insurer in late 2010. It earned about $4 billion from stock sales over that time, five times the $800 million it had invested between 2005 and 2007 for a 17 percent stake in the Chinese firm, according to calculations by Thomson Reuters.

In 2012, Carlyle's investment in China totaled $700 million with the money coming from five different funds relating to China.

Finance

Economists optimistic about 2013 outlook

China's economic growth in 2013 will stabilize and beat 2012's growth rate, a group of economists said on Jan 7. They also said the country should accelerate economic reforms.

The economy will grow at 8-8.5 percent this year and inflation will be under control, said Justin Yifu Lin, former vice-president and chief economist of the World Bank, during a forum on China's economic outlook held by the National Committee on US-China Relations and the China Center for Economic Research.

Lin said investments would continue to be a strong driving force for the Chinese economy.

China Daily-Agencies

(China Daily 01/11/2013 page14)