Business Activities News
- Marubeni cancels venture plan with Chenming
Date: 6-Feb-2007 Sources: (Shenzhen Daily)
MARUBENI Corp. has dropped a plan to form a paper import company in Japan jointly with Shenzhen-listed Shandong Chenming Paper Holdings Ltd., a spokesman for Marubeni said yesterday.
Marubeni, Japan's fifth-biggest trading company, scrapped the plan after falling prices at home and a weak yen eroded the competitive advantage of imported Chinese paper products, the spokesman said, confirming an earlier report by the Nikkei newspaper.
Faced with a mature, crowded market, Japanese paper producers are increasing capacity to lower production costs.
Last July, Shandong Chenming canceled a deal to sell a 30 percent stake for about US$625 million to a Citigroup joint venture, scuppering what would have been one of the largest private equity acquisitions by a foreign buyer in China.
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