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Overview

China Merchants Bank provides a loan to Shandong Weigao Group Medical Group for its acquisition of Argon Medical Devices

Commitments (Constant USD, 2023)$422,644,444
Commitment Year•2018Country of Activity•United StatesDirect Recipient Country of Incorporation•UnknownSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2018

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • China Merchants Bank Co., Ltd.

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Unspecified Special Purpose Vehicle (Argon Medical Acquisition)

Loan description

China Merchants Bank provides a loan to Shandong Weigao Group Medical Group for its acquisition of Argon Medical Devices

Interest type•Unknown

Narrative

Full Description

Project narrative

On September 22, 2017, Shandong Weigao Group Medical Polymer Co., Ltd. — a Chinese state-owned single-use medical devices company— entered into a preliminary acquisition agreement with Argon Medical Devices Holdings — a United States-based specialty medical devices, including blood clot removal systems, drainage catheters, and biopsy products, manufacturer— for the company. China Merchants Bank helped support the acquisition. The deal closed in late March or early April, 2018, for $850 million USD. The acquisition was made by an unspecified joint venture between Shandong Weigao (90%) and an anonymous private equity-backed firm (10%) percent which will cover $420 million of the total purchase with debt, according to the Hong Kong stock exchange. By 2023, the Weigao Group signaled that it looked to sell Argon given the state of US-China relations.

Staff comments

1. AidData has assumed that the $420 million USD portion of the total purchase which was financed with debt was provided by China Merchants Bank as industry sources do not indicate the involvement of other financial institutions.