Anbang Insurance Group plans to take a breather from its acquisition frenzy and play with the $13.5 billion in overseas assets it already has.
Anbang, which acquired the Waldorf Astoria hotel last year for $1.95 billion, told Bloomberg that it’s going focus on its existing companies before seeking out new ones. Since 2014, the Chinese insurer has purchased $13.5 billion in overseas assets, including the $6.5 billion purchase of Strategic Hotels & Resorts.
“We want to build up the existing synergies a bit first, and consider new deals when appropriate opportunities emerge,” Vice Chairman Yao Dafeng told the website. “You can’t just keep buying everyday. You need to also digest and absorb.”
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Anbang joins other major Chinese companies in pulling back on foreign acquisitions. The Fosun Group, for instance, announced in August that it plans to sell $6 billion in assets to help boost its credit ratings.
Anbang made headlines last week over its confusing ownership structure. The New York Times reported that Anbang is controlled by a group of companies that are owned by roughly 100 people. Yao told Bloomberg that the report was “not factual” and that Anbang is a “private company that strictly abides by Chinese laws and regulations.” [Bloomberg] — Kathryn Brenzel