BEIJING, China (CelebrityAccess) — A bid by Chinese conglomerate Dalian Wanda to acquire Dick Clark Productions has reportedly run into regulatory headwinds.
According to the Financial Times, the closure of the acquisition of the US production company has been slowed to a crawl by a regulatory clampdown in China that seeks to limit capital flight from the Asian country.
The move by Chinese regulators come after a series of high profile foreign acquisition deals in a number of sectors by Chinese companies, including Wanda and HNA Group. Beijing regulators announced in December that they would be monitoring “irrational” overseas investments.
Wanda's interest in acquiring DCP, which produces events such as the Academy Of Country Music Awards and the Golden Globes, was first revealed last September in a deal estimated to be worth $1bn, according to Reuters.
Wanda, China’s largest commercial property developer, has been at the forefront of the foreign investment push as it seeks to diversify its portfolio. Other recent acquisitions for Wanda include the AMC movie theater chain in 2012 and Legendary Entertainment, which they acquired last year for $3.5bn.
What this means for the DCP deal is hard to say for certain, but a person close to Eldridge Industries, the investment holding company that owns DCP, told the Wall Street Journal that they expected the deal to complete. led by Guggenheim president Todd Boehly, and spun out of the investment and financial services firm in 2015, also owns entertainment properties such as The Hollywood Reporter and Billboard. – Staff Writers
