Chinese investment will be around $100b per year, any australian...

Chinese investment will be around $100b per year, any australian juniors with decent resources will be taken out by the chinese. They have a staggering amount of cash and can swat australian juniors like a fly.

If VOR shows the goods we will be taken out.




Chinese will step up overseas investment, says M&A consultant Andrew Thomson From: The Australian September 05, 2011 12:00AM

ANOTHER wave of Chinese acquisitions is expected soon as the Asian superpower seeks to diversify investments beyond the underperforming greenback, and as share price falls translate to cheaper purchases.
Mergers and acquisitions consultant Andrew Thomson, a former Howard government minister, said that there had been a change of sentiment in Beijing lately and Chinese investment was expected to step up very soon.

"Any large Chinese state-owned enterprises who have been eager to buy large-scale assets, especially in bulk commodities, have really been told to wait and see for the last couple of years," Mr Thomson told ABC TV's Inside Business.

"But now, perhaps triggered by the recent uncertainty in the market and some reductions in share prices, the authorities in Beijing are now much more ready to give them permission to make these acquisitions."

The Beijing head of economic and business research group The Economist Intelligence Unit, Duncan Innes-Ker, said China would seek to diversify its investments after low returns from its US currency holdings and concerns about the greenback's future. China was likely to be increasing its appetite for risk, with mergers and acquisitions set to rise, he said. "There's certainly going to be an increase."

Chinese outbound direct investment was expected to rise from $US10 billion-$US20bn five years ago to $US100bn on an annual basis by 2012-13, Mr Innes-Ker said.

The chief executive of miner MMG, Andrew Michelmore, said Chinese entities were no longer prepared to pay high prices for big mining assets and were instead seeking good-value acquisitions.

Mr Michelmore knows a lot about the topic, having run OZ Minerals in 2009 when MMG parent entity China Minmetals bought all but one of OZ's assets.

"In the past, it was 'If I bid for something, I have to follow it through, otherwise I've lost face'," Mr Michelmore told ABC TV.

"Now it is also 'If I bid, I want to be successful, but I'm not going to bid to the point that I destroy value'. That is also a loss of face, and I think that's a very important notion to have."

Mr Michelmore said there was a stratum of young Chinese executives in the state-owned sector who had returned to China after education in the US or elsewhere who had "much more analytical approaches to these acquisition propositions".