Chinese Investment Giant Vying for German Gas-station Firm -- 2nd Update

By Eyk Henning and Alec Macfarlane 

FRANKFURT--China Investment Corp. is in the running to buy a German highway rest-stop and gasoline-station company that could be valued at about EUR3 billion ($3.35 billion) in what would be the largest Chinese acquisition in Germany, according to people familiar with the matter.

The potential bid is the latest sign of the massive sovereign wealth fund's ambitions to boost direct investments in long-term overseas assets.

U.K.-based private-equity firm Terra Firma Capital Partners bought Tank & Rast in 2004 for EUR1 billion from investors led by Allianz Capital Partners, Apax Partners and Lufthansa. Terra Firma sold half of its stake in the company to Deutsche Bank's investment arm RREEF. Both are asking suitors to place binding bids by the end of July, people familiar with the transaction said.

Tank & Rast operates about 350 gas stations and 390 service stations on German highways. The company recorded about EUR235 million in earnings before interest, taxes, depreciation and amortization in 2013, the most recent available data.

China Investment Corp. was formed in 2007 as a way for China to diversify its massive foreign-exchange holdings and has roughly $220 billion in overseas assets. CIC's Chairman Ding Xuedong told The Wall Street Journal in March that the fund wants to take a more direct role in managing its overseas assets as its foreign holdings rise. People familiar with the matter say CIC views Tank & Rast as a well-run and stable franchise in Europe's largest economy.

German companies are a frequent target for China and its growing appetite for overseas investments. Chinese insurer Anbang was in talks to buy real estate lender Deutsche Pfandbriefbank this year, The Wall Street Journal reported. Investment fund Fosun has stakes in several German companies, ranging from banks to apparel retailers.

Among the other suitors for Tank & Rast is a consortium led by the company's former owner, Allianz Capital Partners, people familiar with the deal said. The investment arm of the giant German insurer Allianz SE has teamed up with the Abu Dhabi Investment Authority and Canada's infrastructure investor Borealis.

Tank & Rast is also being pursued by the infrastructure arm of Macquarie Capital, while Italian toll-road operator Atlantia SpA has expressed an interest.

Write to Eyk Henning at [e-mail]

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