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Project Insights

Did US-China talks scupper ENN/Toshiba deal?

ENN has walked away from a deal to buy Toshiba’s US LNG business, which may reflect Chinese anxiety over the eventual outcome of US-China trade talks ENN has walked away from a deal to buy Toshiba’s US LNG business, which may reflect Chinese anxiety over the eventual outcome of US-China trade talks.
By Colin Shek 16 April 2019 Asia Pacific / Companies & Finance 0 34139
Freeport LNG in Texas. (Freeport LNG development)

ENN Group’s decision to bow to shareholder pressure and back out of an agreement to buy Toshiba’s LNG business in the United States suggests the purchase was scuppered by Chinese fears of a potential negative outcome to the US-China trade talks.

ENN’s Shanghai-listed subsidiary terminated the acquisition, which was announced six months ago, after its public shareholders voted against a financial guarantee provided by ENN to Toshiba at two shareholder meetings in January and March, the subsidiary said in...