Yantai enters Texas for $1.3 billion

USA

HOUSTON, October 26, 2015 – Chinese investment holding Yantai Xinchao Industry will absorb assets in Texas’ Permian Basin after acquiring Ningbo Dingliang Huitong Equity Investment Centre for $1.3 billion, Yantai announced in a security filings on Saturday.

Investment company Ningbo Dingliang Huitong Equity Investment Centre plans to acquire land located in Howard and Borden counties from US upstream companies Tall Exploration and Plymouth Petroleum. Yantai will then purchase the investment centre for $1.3 billion.

The transaction has been approved by the US Committee on Foreign Investment.

Fierce competition in China from larger state-owned companies along with stricter regulations have acted as impetus for smaller Chinese companies to acquire energy assets in North America.

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