China’s Dalian Wanda Group to Invest in France’s Europa City
In this article (5)
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.
“Moreover, the company also invested $2.6 billion in US movie-theater chain, AMC Entertainment.”
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.
Questions & Answers
Q.What is Dalian Wanda Group’s main reason for looking to invest heavily outside China?
What is Dalian Wanda Group’s main reason for looking to invest heavily outside China?
The Chinese entertainment and real-estate conglomerate is aggressively targeting foreign acquisitions. This is an attempt to continue business growth amid a slowdown in China, particularly due to the country’s cooling real-estate sector.
Q.What kind of facilities will Europa City include once it is developed?
What kind of facilities will Europa City include once it is developed?
The multibillion-dollar development will include a theme park, cultural exhibitions, retail shops, restaurants, and sports venues. It is expected to spread across 200 acres of land on the outskirts of Paris.
Q.Beyond Europa City, what other potential acquisition is Wanda Group considering in France?
Beyond Europa City, what other potential acquisition is Wanda Group considering in France?
Wanda Group is keen on possibly purchasing Amaury Sport Organization, which runs cycling’s Tour de France race. However, this deal is still in its early stages according to individuals acquainted with Wanda's plans.
Q.What other significant international investments has Wanda Group made in recent years?
What other significant international investments has Wanda Group made in recent years?
The Group acquired Legendary Entertainment for about $3.5 billion and invested $2.6 billion in AMC Entertainment. It also bought Infront Sports & Media AG for approximately $1.2 billion and a 20% stake in Atletico Madrid.
Reader pulse
Wanda’s Europa City investment is:
20,447 votes so far