HNA to extend Glencore and CWT’s expertise in commodities and logistics along New Silk Road

Chinese conglomerate HNA Group, a serial acquirer of aviation, finance and property assets overseas, plans to expand its commodities trade and logistics businesses along the New Silk Road as part of a strategic shift, amid Beijing’s scrutiny of mainland companies’ massive overseas investments made in the past few years.

Through its vehicle HNA Innovation Finance, the group plans to use Singaporean logistics firm CWT Group, and the business acquired from Swiss commodities trader Glencore International, to speed up expansion in countries that come under China’s Belt and Road Initiative, said Guo Ke, chief executive of the HNA Innovation Finance.

“HNA plans to use CWT as a platform in Asia for bulk commodity trade, logistics, management and ancillary financial services,” Guo said in an interview with the South China Morning Post.

Headquartered in Hong Kong, HNA Innovation Finance was set up in March and is the newest of seven affiliates under parent HNA Group. The unit mainly engages in commodity trade, financial investment and consumer finance.

In March, Guo’s unit entered into an agreement to purchase a 51 per cent equity interest in Glencore’s oil products storage and logistics business for US$775 million.

HNA Innovation Finance, through its Hong Kong listed HNA Holding, offered to acquire CWT in April for US$1 billion.