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2019 | Buch

Chinese M&As in Germany

An Integration Oriented and Value Enhancing Story

verfasst von: Jan Y. Yang, Lei Chen, Zheng Tang

Verlag: Springer International Publishing

Buchreihe : Management for Professionals

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SUCHEN

Über dieses Buch

Chinese companies have been increasingly active in outbound investment in recent years, with Germany the third largest destination in Europe. Adopting an analytical approach and utilizing case studies and expert interviews, this book examines Chinese mergers and acquisitions (M&As) in Germany, with a focus on the companies’ business growth, particularly the integration process and subsequent growth after acquisition.

The authors contend that Chinese investors take a different approach than their western counterparts, by fostering a long-term orientation toward their investments and placing greater emphasis on co-evolution with the acquired firms rather than transfer of knowledge back to China.

This book offers readers a behind-the-scenes story of three separate M&A cases, shedding light on the growth models that ensue from mergers and acquisitions, and the endeavors of Chinese and German managers to grow the businesses together.

Inhaltsverzeichnis

Frontmatter

Part I

Frontmatter
1. China Goes Global
Abstract
Before the recent wave of M&A activities from Chinese companies in Germany, there were at least four other major waves of M&As worldwide, beginning with the Americans’ expansion into Europe after the World War II. Their international activities were, in turn, followed by similar waves by the Europeans in the 1960s, the Japanese in the 1970s, and finally the Korean and Taiwanese in the 1980s. M&As proved to be a effective vehicle for multinationals to expand overseas.
Jan Y. Yang, Lei Chen, Zheng Tang
2. Germany Is a Favored Host Country for Chinese FDI
Abstract
Cross-border M&A activities by Chinese firms gained steam following the introduction of the “Go Global” policy around the year 2000. However, in the early years, Chinese M&As in Germany were a rarity. They first gained noticeable momentum around 2010 (see Fig. 2.1) when both the number and size of M&A deals were on the rise. Chinese companies took advantage of the weak financial position of European firms, which sped up their penetration into Europe in the aftermath of the global financial crisis.
Jan Y. Yang, Lei Chen, Zheng Tang
3. Overview of General Environment for M&A in Germany
Abstract
Surges of direct investment from a particular country into Europe are nothing new. Each time an FDI “invasion” has occurred, it has caused unrest both at a governmental level, due to concerns about the loss of national sovereignty, and at the local level among companies concerned about the competitive threat by the supposed interlopers. In the 1960s–1970s, it was mainly US investors that settled in the newly created customs union of the European Economic Community (EEC). With their superior technological and organizational skills, US firms were once predicted to sweep out domestic companies. The initial opposition to the US investors lessened after, as local firms often managed to absorb technology and know-how from their US competitors and that the impact on employment and research activities was mostly positive.
Jan Y. Yang, Lei Chen, Zheng Tang
4. European and German Controls on Foreign Direct Investment
Abstract
Germany has a sound legal system and offers a reasonable policy environment for acquisitions by foreign companies. According to German law, approval is needed for M&As in specific industries. In the military industry, for example, acquisitions to take ownership of more than a 25% stake in a company have to be assessed and authorized by the German government. It is necessary to make a declaration when acquiring stakes of 10% or more in banks and financial service companies and approval is needed from the financial service authority. There are similar regulations in the insurance industry. Assets transfers (not ownership transfers) in the sectors energy supply, telecommunications, transportation, natural resource exploitation, chemicals, and construction require approval from government authorities. German law also dictates that assessments have to be carried out for acquisitions of listed companies or any firm that has a significant impact on its industry.
Jan Y. Yang, Lei Chen, Zheng Tang

Part II

Frontmatter
5. ShangGong Europe: The Odyssey of a State-Owned Chinese Enterprise to the West
Abstract
This case study was published with kind permission of the SGSB Group.
“Das gibt’s doch gar nicht” (In English: “That doesn’t even exist”)
Jan Y. Yang, Lei Chen, Zheng Tang
6. Joyson Electronics/Preh: Be Part of Something Big
Abstract
This case study was published with kind permission of the Joyson Group.
Jan Y. Yang, Lei Chen, Zheng Tang
7. CIMC-Ziegler: Sailing to New Shores
Abstract
This case study was published with kind permission of the CIMC Group.
Jan Y. Yang, Lei Chen, Zheng Tang

Expert Interviews

Frontmatter
8. Interview with Dr. Sun Shaojun, Executive President of Weichai Power Co., Ltd
Abstract
This interview was conducted on July 27th 2017 and was published with kind permission of Dr. Sun Shaojun.
Jan Y. Yang, Lei Chen, Zheng Tang
9. Interview with Mr. Wang Wei, a Partner Specializing in Transaction Services at PwC Germany
Abstract
This interview was conducted on August 9th 2017 and was published with kind permission of Mr. Wang Wei.
Jan Y. Yang, Lei Chen, Zheng Tang
10. Interview with Mr. Zhang Huanping, General Manager of Eurasian Consulting
Abstract
This interview was conducted on July 26th 2017 and was published with kind permission of Mr. Zhang Huanping.
Jan Y. Yang, Lei Chen, Zheng Tang

Part IV

Frontmatter
11. Key Findings of Post-M&A Integration by Chinese Investors in Germany
Abstract
Previous chapter features three case studies with three Chinese acquiring companies: the SGSB Group, previously known as ShangGong, the CIMC Group, and Joyson Electronics. The first two are state-owned enterprises and the latter is a privately owned company. In what follows, we highlight the commonalities and differences between their approaches to post-M&A integration, which offers a lens through which to understand Chinese investors’ value creation strategy.
Jan Y. Yang, Lei Chen, Zheng Tang
12. Closing Remarks on Chinese M&A Activities in Germany
Abstract
Is China taking over Germany? Many German media have been saying so repetitively in recent time. But the reality is the opposite. China’s share of total foreign direct investment stock in Germany accounts for less than one percent as of the end of 2016. More importantly, Chinese acquirers do play a different game than their western counterparts, in that they value and preserve the independence of the acquired firms to a large extent. This means that the German firms are not only contributing to the combined group by providing the Chinese mother companies with their know-hows, but also would gain access to strategic assets provided by the Chinese acquirers. These include financial support and market access to China as well as strategy, vision and even managerial know-hows, under circumstances.
Jan Y. Yang, Lei Chen, Zheng Tang
Backmatter
Metadaten
Titel
Chinese M&As in Germany
verfasst von
Jan Y. Yang
Lei Chen
Zheng Tang
Copyright-Jahr
2019
Verlag
Springer International Publishing
Electronic ISBN
978-3-319-99405-5
Print ISBN
978-3-319-99404-8
DOI
https://doi.org/10.1007/978-3-319-99405-5