Sany Says U.S. Wind-Farm Ban Won’t Stop Its Oversea Acquisitions
Stock Chart for Sany Heavy Industry Co Ltd (600031)
Sany Group Co., China’s biggest construction-machinery maker, said U.S. President Barack Obama’s September order blocking a planned Oregon wind-farm project won’t stopped it from pursuing acquisitions overseas.
“We won’t give up any opportunity for mergers and acquisitions and restructuring to strengthen the company,” Xiang Wenbo, president of listed unit Sany Heavy Industry Co. (600031), said at a briefing in Beijing today. “We expect more mergers and acquisitions abroad.”
Obama on Sept. 28 ordered Ralls Corp., controlled by Sany, to divest all of its interests in the wind-farm project that consisted of locations near or within restricted Navy airspace. The decision marked the first overseas purchase blocked by a U.S. president on national security grounds in 22 years.
The multi-agency Committee on Foreign Investments in the United States, or CFIUS, initially barred the wind farm project. Ralls filed a lawsuit Sept. 12 that challenged the CFIUS ruling and then on Oct. 1 added the president to the suit.
U.S. District Judge Amy Berman Jackson in Washington ruled last month that Ralls can continue arguing that President Obama should explain his order though it can’t challenge his authority to require a sale. Ralls may lose about $20 million because of the ban, Zhou Qing, Sany’s in-house lawyer, said in October.
“We aren’t asking for the president to cancel the ban,” Xiang said today. “We need explanations and compensation.”
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