Coming up: Report series on Chinese investment in Germany
Simon-Kucher & Partners is joining forces with the China International Investment Promotion Agency (Germany) to launch a research initiative on Chinese investment in Germany. The findings will be published in a series of reports on an annual basis, with the first edition ready in 2017. Prof. Dr. Dr. h.c. mult. Hermann Simon, Chairman and founding partner of the firm, will serve as Academic Advisor for the research.
Chinese companies have been increasingly active in outbound investment in recent years. In 2015, a total of 593 Chinese outbound mergers and acquisitions took place across a wide range of industries and regions, with an aggregate value of USD 40.1 billion1. Germany, being one of the most popular Chinese investment destinations, saw 36 mergers and acquisitions worth over USD 1 billion in 2015 (counting publicly announced deals only)2. This trend continued in 2016. Despite extensive, successful cooperation, some German media and institutes remain cautious or even skeptical about Chinese investors.
So far, German media coverage on this topic mainly focuses on the motivation behind merger and acquisition deals, and their impact on the German labor market. Few have looked deeper into the companies’ business growth, particularly the integration process and subsequent growth after acquisition. In fact, nowadays investors are increasingly interested in enhancing the value of the assets acquired in their newly entered markets.
This series of reports will look behind the scenes with both qualitative and quantitative methods, shedding light on the endogenous growth models that ensue mergers and acquisitions, the endeavors of Chinese and German managers in governing innovative companies, and value enhancement.
In order to provide first-hand insights, representative cases with distinct backgrounds will be examined. Some will be state-owned enterprises that have performed a series of acquisitions, others will be privately owned companies that have risen to become global champions through strategic investment and expansion. The neutral analysis will separate facts from misconceptions about Chinese investors and provide both German and Chinese executives with useful insights for future mergers and acquisitions in today’s new era of globalization.
From Simon-Kucher, the joint initiative is led by Jan Y. Yang. He is Director at Simon-Kucher and oversees the consultancy’s China desk. Yang can be reached at [email protected].