The unsettling acquisitiveness of Anbang, a Chinese insurer, in the US

A warning sign arises during the investment spree of Chinese companies led by Anbang Insurance, which outbid Marriott International for the Starwood Hotels & Resorts deal. And Anbang funds the acquisition by selling high-yield investment products to Chinese citizens. In M&A practice, a strategic buyer should typically pay higher than a financial investor. In the Starwood deal, Marriott is expected to benefit more than a financial investor like Anbang from more efficient operations and cost savings - "synergies" for the strategic investor. It is worth to note that the last time when the financial buyers went crazy and paid higher than strategic buyers was just before the financial crisis. What is the reason for Anbang's big appetite for US hotel acquisitions? Diversification and expectation of yuan depreciation! People are easily comparing this investment spree by Chinese companies with the shopping spree by Japanese companies several decades ago. The New York Times has more.