Fashion
China’s Dalian Wanda Group Co. is planning to make big investments in France, sources said on Thursday. The Chinese entertainment and real-estate conglomerate is aggressively targeting foreign acquisitions in an attempt to continue business growth amid a slowdown in China.
The Chinese company is broadening its global ambitions and in advance talks to make a large investment in a retail and development hub called Europa City, located on the outskirts of Paris, sources said. Europa City, the multibillion-dollar development, is expected to open in 2024, according to the company’s official website. The development will include a theme park, cultural exhibitions, retail shops, restaurants, and sports venues. In addition, the project will spread across 200 acres of land, according to reports.
The deal, if successfully close down, would check Wanda’s first real move into France. Yet, it has greater arrangements for the nation. Wanda, owned by Chinese billionaire Wang Jianlin, is keen on possibly purchasing Amaury Sport Organization, an organization that runs cycling’s Tour de France race, individuals acquainted with Wanda’s deal said. However, the deal is still in its early stages.
Wanda owns most of the shopping malls and different theme parks in China. The Europa City deal will likely strengthen the company’s position both in home and overseas market. Likewise, it will also mark a victory for the Chinese based investor as it was keen to expand its business outside China and diversify its investments. Earlier in January, Wanda Group also announced that the company is looking to construct an industrial park in Haryana, a province in northern India, with an investment of around $10 billion.
The Group’s goal of expanding globally is clear and it underwent a buying spree in the past three years. In January 2016, it acquired Legendary Entertainment for an amount close to $3.5 billion. The investment was the result of the Chinese commercial property developer’s ambitions to become a global film giant. Legendary was responsible for providing the finances for popular box office hits such “Godzilla,” “Inception,” and “Jurassic World.” In China, the Hollywood company co-financed “Pacific Rim,” which later turned out to be a box office hit. Recently, Wanda Group also financed “Southpaw,” a hit Hollywood boxing movie.
Moreover, the company also invested $2.6 billion in US movie-theater chain, AMC Entertainment. Likewise, it has also made an entrance into the sports industry. Last year, the Chinese group bought Infront Sports & Media AG for approximately $1.2 billion. It has also purchased a reasonable 20% stake in Atletico Madrid, a Spanish soccer club for around $49.6 million. If it’s successfully able to acquire the organization that runs Tour de France, the company will make a very prominent investor in the sports industry.
A larger proportion of Wanda’s business is in China, but the country’s cooling real-estate sector has encouraged the company to focus on overseas acquisitions. It has already closed down some of its retail stores in the country amid poor sales. As for now, in China, the company is focusing towards investing in the e-commerce and financial sector.
