Energy

CNOOC terminates Pan American deal

China's biggest offshore oil producer CNOOC Ltd said its 50 percent-owned unit, Bridas Energy Holdings, has determined to terminate a deal to buy BP Plc's 60 percent stake in Argentina-based oil and gas group, Pan American Energy LLC.

In a filing with the Hong Kong stock exchange, CNOOC said Bridas Energy sent a letter to BP on Nov 5 to terminate the deal, which was initially signed in November last year. It gave no further details.

Total lubricant plant coming up in Tianjin

Leading multinational energy company Total has invested 30 million euros ($40.7 million) for construction of a lubricant plant with a maximum annual capacity of 200,000 metric tons in northern China.

The company and local officials said that the plant, located in the port city of Tianjin, is expected to start operation in early 2013 and will be one of Total's largest lubricant production units worldwide.

The plant will produce a variety of lubricants for automobiles, motorcycles, original equipment manufacturer and planes. Products will mainly be sold in China's north and west regions.

Deals

Yum! gets nod to buy Little Sheep

Yum! Brands Inc., owner of the KFC and Pizza Hut fast-food chains, has received approval from the Ministry of Commerce for its proposal to take over Little Sheep Group Ltd, China's leading hot-pot restaurant chain.

The industry regulator cleared the application under its anti-monopoly law, the Inner Mongolia-based Little Sheep said Nov 8, citing a statement from Yum!.

The US restaurant operator is offering to buy a 93.2 percent stake in Little Sheep in cash at HK$6.5 (83 US cents, 0.60 euro) per share, the statement said. The founder of the Chinese company will hold the remaining 6.8 percent stake. The deal is pending approval by Little Sheep's shareholders.

Internet

Alibaba, Softbank mull Yahoo bid

Alibaba Group Holding Ltd and Japanese Softbank Corp are talking with private equity funds about making a bid for all of Yahoo! Inc. without the company's blessing, people with knowledge of the matter said. Alibaba and Softbank, in an effort to buy back stakes owned by Yahoo, have grown impatient with a lack of progress in direct talks with the company, said the people, who asked not to be named because the negotiations are private.

The Asian companies aim to work with partners that haven't signed non-disclosure agreements circulated by Yahoo that can make it harder to bid for the whole company, the people said. Yahoo prefers to sell a smaller stake, rather than cede complete control, the people said.

Leisure

Marriott set to open one hotel each month

Marriott International Inc plans to open one hotel every month in China during the next three years, even though it recognizes that increasing labor costs will create a large obstacle, the president of the company said on Nov 8.

The US-based lodging company has announced that it will build its 100th hotel in China - a JW Marriott Hotel with 345 rooms - in Shenyang, Liaoning province. The project is now under construction.

Beverages

Tingyi signs bottling deal with PepsiCo

Chinese instant noodle maker Tingyi (Cayman Islands) Holding Corp has reached an agreement with PepsiCo Inc under which Tingyi's beverage subsidiary will become the US firm's franchise bottler in China. The move is designed to strengthen both parties' ability to capture market share in China's non-carbonated drinks sector.

Under the new alliance, Tingyi-Asahi Beverages Holding Co Ltd will partner with PepsiCo's current bottlers to manufacture, sell and distribute the company's carbonated soft drinks and its Gatorade brand. PepsiCo will retain branding and marketing responsibilities for the products, it said in a statement.

Safety

Regulator tests disputed shampoo

The nation's food and drug watchdog is conducting a safety test and evaluation of baby shampoo produced by Johnson & Johnson amid allegations that the company's products contain harmful chemicals.

Experts from a cosmetics safety committee under the State Food and Drug Administration began an evaluation process for quaternium-15, a chemical preservative used in cosmetics.

According to Chinese regulations, the concentration of quaternium-15 in cosmetics should not exceed 0.2 percent, the same standard used by the European Union, said Sun Youfu, chairman of the committee.

Industry

SunPower, First Solar to reorganize

SunPower Corp and First Solar Inc, the two largest solar panel manufacturers in the United States, will reorganize as increased competition from China drives down prices and pushes weaker companies into bankruptcy.

SunPower is seeking to cut operating expenses by as much as 10 percent next year, it said in a statement on Nov 4. First Solar said it will consolidate its manufacturing in response to slowing global demand for panels. Both companies cut their profit forecasts last week, followed by MEMC Electronic Materials Inc, the second-largest US polysilicon maker.

China Daily-Agencies