By the end of September, China Investment Corporation (CIC) completed phase one of its acquisition of a 45% share of Nobel Holdings Investments Ltd., a Russian oil and gas company. The second phase will include investment in assets around the oil field. The entire deal amounts to $300 million. This move is only one month after CIC spent $939 million to purchase 11% of Global Depositary Receipts (GDR) of a Kazakhstan oil company. Experts suggested that this current series of Chinese acquisitions is the result of the devaluation of US Dollar. CIC’s investing into natural resources is a new trend in its investment strategy.
Source: China Economy Net, October 16, 2009.