Beijing Is Forcing Corporate Heroes to Make Tough Choices
CATL’s plan for an offshore fund highlights how capital curbs are posing dilemmas for companies keen to expand offshore.
Nurturing success stories.
Photographer: Qilai Shen/BloombergA plan by Contemporary Amperex Technology Co. to set up a fund to invest in members of its supply chain is a pragmatic move for the world’s leading electric-vehicle battery maker. But a company whose cash pile more than doubled to $40 billion in just two years shouldn’t need to seek external investors. Unless it’s Chinese.
CATL is looking to raise $1.5 billion from sovereign wealth funds and private offices of the super rich, the Financial Times reported last week. Mercedes-Benz Group AG and families connected to other automakers have also been approached, the newspaper said. The Ningde, Fujian-based company plans to put about 15% of its own cash into the fund.