This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-16643989
The article has changed 8 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
China wealth fund buys nearly 9% of Thames Water | China wealth fund buys nearly 9% of Thames Water |
(about 3 hours later) | |
China Investment Corporation (CIC), the country's sovereign wealth fund, has bought 8.68% of the company behind UK utility group Thames Water. | China Investment Corporation (CIC), the country's sovereign wealth fund, has bought 8.68% of the company behind UK utility group Thames Water. |
It marks the fund's first acquisition in the UK, and follows a visit to China this week by Chancellor George Osborne. | It marks the fund's first acquisition in the UK, and follows a visit to China this week by Chancellor George Osborne. |
Thames Water is owned by Kemble Water, a consortium of investors led by Australian bank Macquarie. | Thames Water is owned by Kemble Water, a consortium of investors led by Australian bank Macquarie. |
CIC was set up in 2007 to invest some of China's huge $3.18tn (£2tn) in foreign exchange reserves. | CIC was set up in 2007 to invest some of China's huge $3.18tn (£2tn) in foreign exchange reserves. |
In a one-sentence statement on its website, CIC said it bought the stake through a wholly-owned subsidiary. No purchase price was disclosed. | In a one-sentence statement on its website, CIC said it bought the stake through a wholly-owned subsidiary. No purchase price was disclosed. |
Thames Water, acquired by Kemble in 2006, is the UK's largest water and sewerage company, serving about 14 million customers. | Thames Water, acquired by Kemble in 2006, is the UK's largest water and sewerage company, serving about 14 million customers. |
CIC chairman Lou Jiwei had said recently that his company was interested in investing in European and US infrastructure. | CIC chairman Lou Jiwei had said recently that his company was interested in investing in European and US infrastructure. |
Speaking about the deal, the Chancellor said: "This is a significant step by China. It is a vote of confidence in Britain as a place to invest and do business. | |
"This investment is good news for both the British and Chinese economies." | |
Foreign investors | |
Mr Osborne met China's Vice-Premier Wang Qishan and the heads of CIC and the ICBC bank on Tuesday. | Mr Osborne met China's Vice-Premier Wang Qishan and the heads of CIC and the ICBC bank on Tuesday. |
The chancellor also announced that Britain had agreed to work with Hong Kong to develop the City of London as a major offshore centre of trade in China's currency, the yuan. | The chancellor also announced that Britain had agreed to work with Hong Kong to develop the City of London as a major offshore centre of trade in China's currency, the yuan. |
The government has been looking at ways to support greater private sector and foreign investment in infrastructure. | |
Mr Osborne's meetings in Beijing earlier this week discussed potential Chinese interest in a number of projects in the plan. | |
In August, Northumbrian Water agreed to a £2.4 billion takeover by a Hong Kong-based investment firm led by Asian billionaire Li Ka-shing. | |
In December, the Abu Dhabi Investment Authority, another huge sovereign wealth fund, bought 9.9% of Kemble for an undisclosed price. | In December, the Abu Dhabi Investment Authority, another huge sovereign wealth fund, bought 9.9% of Kemble for an undisclosed price. |
Thames Water supplies households in London, Berkshire, Buckinghamshire, Gloucestershire, Kent, Oxfordshire, Surrey and Wiltshire. | Thames Water supplies households in London, Berkshire, Buckinghamshire, Gloucestershire, Kent, Oxfordshire, Surrey and Wiltshire. |
In the last 10 years, Ferrovial of Spain has bought BAA, the operator o fHeathrow and Stansted Airports, Germany's RWE has acquired npower, and Australian bank Macquarie has taken control of car parks by buying NCP. |