A Research for Reasons of International Business Strategy for Chinese Mergers & Acquisitions in Europe and Germany by Prof. Dr. Kai-Uwe Wellner
The reasons for Chinese investors selecting German SME and Hidden Champions as potential acquisition in favor to British or French and Dutch companies is interesting, as one of the key reasons on acquiring these companies is a long term perspective in Image, Innovation and special know how.
The survey showed that in many cases the financial aspects do play a minor role for Chinese investors vs. so called soft skills. Which are image and long term perspective and know how (admiring) of the acquired brand or company. German and Swiss hidden champions and innovation/technology leader are major image factors for Chinese companies. While 1a investments in real estate in the last decade were the major image giver mainly in Chinese OFDI in the United Kingdom.
With the strong growth and price increase of the German Real Estate market since 2013 and the Brexit vote in the UK, the Chinese Real Estate investment shifts from England to Germany. On the other hand leads the strong German manufacturing basis and innovation and technology leadership of major industries in Germany to an increasing interest of Chinese investors.
This trend is underlined by the strategy 2030 of Building a Modern, Harmonious, and Creative High-Income Society in China with a strong emphasis on innovation and technology leadership in manufacturing and (environmental) sustainability. All of these factors provide a solid foundation for the optimistic growth and development of further Mergers & Acquisitions deals in the future.