Seta Capita lhas recently been selected by the Italian government as the exclusive partner for its investment promotion arm in China.The investment promotion unit is part of the Italian Trade Agency, which aims to strengthen economic ties between Italy and China.
About the Italian Investment Promotion Sector
The Italian Investment Promotion Agency (FDI) is a government agency that promotes overseas investment in Italy.
FDI has 19 offices around the world and seven main branches including New York, London and Beijing.FDI project library collection to many projects from all over Italy, project covers manufacturing, aerospace, life science, digital technology, logistics, and many other areas, the obligation to foreign investors to give full support, including but not limited to location and on-the-spot investigation, financial support and incentives, assist with market research, assist to complete the work permit application and so on.
As the exclusive partner of The Italian Department of Investment Promotion in China, We will be organizing online and offline roadshows for all walks of life in Italy in conjunction with INVITALIA, the Italian Ministry of Foreign Affairs, the Italian regional governments and associations.
At the same time, Tanya Wen, Seta Capital co-founder, was named China head of Italy’s investment promotion arm.”Seta Capital is very honored to contribute to such an important project and we will devote all possible resources to complete the government project in the best way we can,” said Tanya.
About Seta Capital
Headquartered in Milan, Seta Capital is a boutique investment bank focusing on cross-border mergers and acquisitions and strategic partnerships between China and Europe.We currently have offices in Italy, China and the Netherlands.In recent years, we assisted nearly 40 Buyers and sellers in China and Europe to complete cross-border M&A, joint ventures and strategic cooperation projects. The cases included m&G’s investment in Italian Carioca, Siemo Electric’s acquisition of Italian robotics Company Epistolio, And Qijing Machinery’s acquisition of German Heat Treatment company.In 2019, we completed 40% of the cross-border M&A projects between China and Italy.
SETA CAPITAL ADVISED TENOVA SPA IN THE SALE OF HTC GROUP TO NINGBO QIJING HOLDINGS
On July 17, 2019, Tenova SpA announced that the company has sold 100% stake of HTC Group to Shanghai Qiqi Information Technology Co., Ltd., which was jointly established by Ningbo Qijing Holdings and Shanghai Oriental Securities Capital Investment Co., Ltd. In 2019, the annual revenue of HTC Group is expected to be approximately €100 million. In this transaction, Seta Capital, a cross-border M&A advisor, acts as the exclusive financial advisor to Tenova SpA. As a subsidiary of Tenova SpA, HTC group consists of four companies: IVA Schmetz (Germany), Mahler(Germany), Fours Industriels B.M.I. (France) and IVA Schmetz Furnaces (China). The group specializes on heat treatment of metal workpieces. Its revenue in 2019 is expected to be approximately €100 million. Currently, the demand for heat treatment in the aerospace industry is growing rapidly, and the demand in medicine and metal powder will also expand rapidly soon.
Tenova SpA, a member of Techint group, provides innovative solutions for metals and mining with advanced technology, products and engineering services. The group is headquartered in Italy. Its parent company, Techint Group, is a world-famous industrial group. Techint Group was founded in 1945. It has six industrial groups, two of which are listed in the US and Europe. The Group’s industries span engineering, construction, steel, mining, oil and gas, industrial plants and healthcare. It has subsidiaries and plants in more than 35 countries and regions around the world. In 2019, Techint Group ranked 90th in the Fortune Global 500 Family Business, with an annual revenue of $18.5 billion.
About Qijing Holdings Co., Ltd.:
The buyer of this transaction is Shanghai Qiqi Information Technology Co., Ltd., which was jointly established by Ningbo Qijing Holdings Co., Ltd. and Shanghai Oriental Securities Capital Investment Co., Ltd. Ningbo Qijing Holdings Co., Ltd. is the parent company of Qijing Machinery Co., Ltd. (603677.SH). Qijing Machinery Co., Ltd. is a listed company specializing in mechanical product research and development and precision processing. Its product structure includes home appliance parts, power tool parts and auto parts. Its clients include Haier, Whirlpool, Samsung, Bosch, Panasonic, TCL, Hisense, Skyworth, Makita, Hilti and other high-quality premium customer groups. The company has become one of the largest manufacturers of fine machining workpieces in China.
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CARIOCA SIGNS A STRATEGIC PARTNERSHIP WITH M&G, THE LARGEST STATIONERY COMPANY IN CHINA
Shanghai M&G Stationery Inc. (“M&G”), the largest stationery company in China with a market capitalization of about 3.6 Billion Euros, today announced that it has signed a strategic partnership agreement with Carioca SpA (“Carioca”). M&G will become the long-term exclusive distributor of Carioca products in China, while a fund under M&G will separately invest in Carioca as a minority shareholder. Both parties are confident that by partnering with M&G, Carioca will be able to penetrate the market and become a leading foreign brand in the children’s stationery category in China. The companies are enthusiastic about having a strong partnership and further enhance their international presence in strategic markets such as China and Europe. Carioca has been selling in China for a number of years via online channels, however M&G plans to introduce Carioca products into its large network of offline stationery stores, as well as its various online channels in China to support Carioca’s growth strategy. Both Carioca and M&G will mutually benefit from growing new markets. As part of the strategic alliance, Carioca also plans to distribute selected M&G’s stationery products in Europe. In this transaction, Carioca was advised by the law firm Groder. M&G was advised by Seta Capital, a Europe-China cross border M&A advisor, as its financial advisor; and Ernst & Young Italy as its due diligence and legal advisor.
Shanghai M&G Stationery Inc. is the largest stationery company in China and the only listed company in this industry in China, with a current annual revenue of approximately EUR 1.1 billion and a market capitalization of EUR 3.5 billion. Shanghai-based M&G was established in 1996 and it has become a household brand in China with a retail network encompassing more than 70,000 retail stores, mostly branded M&G. M&G also has a 300,000 m² M&G Industrial Park and over 10,000 staff. M&G has co-operated with a number of international stationery brands in recent years. In 2017, it acquired the Chinese subsidiary of Office Depot, to establish its office supply division named M&G Colipu.
Founded in Italy，CARIOCA® is an internationally loved brand created in 1965, specializing in the production of coloring tools. Its product range includes felt tip pens, colored pencils, tempera, pastels, educational games and many other drawing items. The brand caught on in the early 60s with a historic advertising campaign starring the beloved character Carioca Jo, who is still featured on all CARIOCA® packaging. Today CARIOCA® is a symbol of the best of “Made in Italy,” with products designed to free the imaginative powers of adults and children in a shared play of creativity and dexterity.
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Another Chinese company has completed an overseas acquisition of a robot company, and the pace of Chinese companies’ overseas deployment of advanced manufacturing is still accelerating.It recently finished the play of EPISTOLIO S.R.L, an Italian EPISTOLIO of oil and gas.Under the agreement, Seymour Electric formally completed its 40% stake in the Italian robotics and automation equipment company through its wholly owned subsidiary Xuzhou Ceste Technology Co., Ltd. with 3.5 million euros (about 27 million yuan) of its own funds.The two parties will jointly invest in the establishment of a joint venture company in China to explore the Chinese and Southeast Asian markets.
Epistolio S.R.L. retained Seta Capital, the Epistolio of Epistolio, to play the game as an exclusive seller’s adviser.
Introduction of the underlying
To Epistolio S.R.L, a typical “small and beautiful” European family business, played at the Epistolio of Varese, Lombardy, late last week.The company’s main products include six-axis spraying robots, weight sensing feeding systems and other automation equipment.Epistolio master the core technology of software, hardware and terminal application in the robot and automatic feeding system.Our products are widely used in automobile manufacturing, aviation, furniture, building materials and other industrial fields.Clients include famous Airbus Group, Fiat Fiat Auto Group, Costa Crociere Costa Costa Cruises, Ferretti yachts.
Seymour Electric is A listed company.The strategic objective of the company’s acquisition of Epistolio isto provide a comprehensive solution for the intellectualization of the factory.Make use of the existing business basis, layout intelligent bulk material factory, expand and expand intelligent business fields including automobile, 3C industry and other industries with high intelligent requirements.This acquisition Epistolio lands initial 40% stake is the company’s overseas strategy, the investment, the company will with Epistolio joint venture in China, the two sides respectively using related quality resources, play their own advantages, to carry out intelligent manufacturing and other business cooperation, open international markets, improve company’s internationalization level at the same time, further improve to accelerate its implementation factory intelligent industry layout and development in the field of intelligent manufacturing.
A review of Overseas robot acquisitions by Chinese companies
It is a strategic roadmap for many Chinese enterprises to acquire overseas enterprises to explore new markets and introduce cutting-edge technologies.Since becoming the world’s largest industrial robot market in 2013, the investment and merger wave in the domestic robot industry continues to heat up.The table below consolidates Chinese acquisitions of overseas robot companies this year.
As one of the bases of advanced manufacturing industry in the world, Europe has many small and medium-sized enterprises with innovative core technologies.Among them, the development level of northern Italy in the field of robotics and automation is no less than that of Switzerland and Germany.More importantly, Compared with Germany, France, Switzerland and other countries, Italian companies and governments are more friendly to Chinese investors, which greatly reduces the transaction risks of the acquisition of Italian companies.In fact, In recent years, Italy has been one of the biggest destinations for Chinese companies to acquire overseas, and it is also far ahead in terms of the number of acquisitions of robot and automation companies.
Overseas acquisition + Chinese joint venture model
A growing number of Chinese companies are incorporating terms and strategic arrangements for buyers and sellers to jointly fund joint ventures in China into overseas acquisitions.In fact, the arrangement of setting up a joint venture with the joint contribution of both parties (especially the part of the contribution of the seller from the income of the counterparty) provides a hidden option for the transaction, which is conducive to the realization of interest binding and lays a foundation for long-term and stable cooperation.From the seller’s point of view, many European small and medium-sized business owners are aware of the importance of the Chinese market, but do not have the financial and human resources to develop the Chinese market alone because their companies have long been controlled and operated by their families.Therefore, the strategic intention of the seller can be achieved by establishing a joint venture while selling the equity and by complementing the resources of both parties to jointly develop the Chinese market.
About Seta Capital
As the exclusive seller’s financial advisor, Seta Capital provided the Seller with professional advisory services in the transaction, including strategy formulation, buyer search, due diligence completion, negotiation of transaction terms, closing of the equity acquisition and establishment of a joint venture in China.Headquartered in milan, Italy, Seta matter Capital, knowledge Capital is a company focusing on cross-border advisory services, with rich experience in the industry, extensive network and excellent execution, in cross-border investment, mergers and acquisitions, joint venture cooperation and overseas business development framework for our customers to bridge between Asia and Europe.Certus has an experienced international team with offices in Europe and Shanghai, China, providing customers with professional advice and mature solutions.We are committed to exploring the value of overseas investments, mergers and acquisitions, business cooperation and expansion, and other international businesses to help our clients achieve their strategic goals.With a strong engineering and technical background, our team is able to accurately understand the development trends and industry dynamics of manufacturing and industry, and capture and grasp investment and development opportunities for customers in advanced industries.
On 9th October , the State Council of China issued a policy direction document, or an “Opinion”, to improve the quality of listed companies, including support for overseas M&A activities by listed companies. This is an important signal that the Chinese financial markets will open up further, specifically towards outbound M&A.
The “Opinion” supports Chinese listed companies to issue shares to purchase overseas high-quality assets. The “Opinion” also supports allowing more qualified foreign investors to make strategic investments in Chinese listed companies, in order to enhance the competitiveness of domestic public companies internationally.
This policy direction encourages institutional investors and long term value investors to participate more in M&A activities of listed companies, to improve various aspects of listed companies, including corporate governance, innovation, industrial upgrade.
Economists point out that the “Opinion” reflects the fact that more and more capital will flow into Chinese stock markets given the restrictions in real estate. Also it shows the Chinese government’s intension on improving the quality of listed companies and the stock market in general, to shift the focus of the stock market from fund raising to investing.
Today Seta Capital Shanghai moved into a larger office. To keep up with our growth we moved to the same building of the Italian Consulate and of the ITA-ICE office. Here we expect to have a better environment for our employees and to make our job more effective. Come and visit us in Changle Lu 888, Shanghai, floor 9. We have just finished moving so we are still in the moving gear.
Seta Capital business is growing and expanding, therefore Seta Capital is looking for one M&A intern in Milan, one M&A intern in Shanghai, one Social Media Manager to manage the online activities of the Digital Business Unit of Seta Capital.
We are looking for dynamic, proactive individuals with problem solving capabilities that love new challenges and entrepreneurial environments.
If you feel you possess these characteristics and you would like to join an high growth and truly international firm please send your CV and a presentation in english to firstname.lastname@example.org
Trying to figure out the feasibility to do business in China? Take this latest updates into account before deciding. Number prove that China has made solid progress in turning itself into a friendly land for international business. China has climbed the rank of the Ease of Doing Business Index, from 78th to 46th in the past 2 years, now ahead of Italy. Especially in Shanghai, the government has recently rebuilt the company regulation system to attract business. Today, it only takes 2 weeks to set up a WOFE from zero. Check out for the detailed guide here: https://lnkd.in/fwUF2Ca
For any information regarding the new policy, please contact: