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Corporate mergers and acquisitions continued to force the German investment
Article Source:People's daily Update Time:2017-2-15

align="left"> 2016 Chinese enterprises in Germany conducted a total of 45 mergers and acquisitions, the number of projects and the amount of a record. As of July last year, the working staff in the German supplier of modular Linde hydraulics hydraulic system in the modernization of plant investment.


According to the German PWC accounting firm statistics, in 2016 Chinese enterprises in Germany conducted a total of 45 mergers and acquisitions, the total amount of more than 11 billion euros, the number of items and the amount of a record. Chinese Embassy in Germany business office official told reporters that China and Germany to strengthen mutually beneficial cooperation in investment, the two companies, the government has to further strengthen the internal needs of cooperation.


Diversified investment trends


PWC's statistics did not repeat the calculation of some of the early trading projects, but also did not take place in other countries to achieve the merger of the German subsidiary equity transfer into a record of Sino German mergers and acquisitions. If according to the statistical consulting firm Ernst & young, January 2016 to October, the number of mergers and acquisitions China companies in Germany for 58, 19 more than the year 2015, the amount reached 11 billion 600 million euros.


PWC mergers and acquisitions services trading partner Wang Wei told reporters that in recent years, China continued to invest in German investment force. Prior to 2010, Chinese companies mainly invested in the traditional German machinery manufacturing or industrial products industry, and nearly 1/3 for the acquisition of bankrupt enterprises. But from 2010 to the end of 2015, China 6 years investors invested nearly 150 acquisitions in Germany, of which 19 projects turnover of over 100 million euros; another 11 projects although trading volume of less than 100 million euros, but the subject of the company in the world with more than 1000 employees.


From the beginning of the second half of 2015, China's investment in Germany showed accelerated and diversified trend. The first is a significant increase in large projects. Before 2010 there have been 100 million mergers and acquisitions of Euro above, from 2010 to 2015 a total of 19 hundreds of millions of euros in mergers and acquisitions, but no more than 1 billion euros of the transaction, and a year in 2016 there have been 16 cases of hundreds of millions of euros funded acquisitions, including 3 in more than 1 billion euros: the acquisition of KUKA (4 billion 600 million the euro), Three Gorges group's acquisition of Germany's largest offshore wind farm Meerwind (estimated amount of 1 billion 600 million euros), Beijing holdings acquisition of EEW waste energy company (1 billion 438 million euros). Secondly, in the field of investment, manufacturing industry Trading (automobile industry, mechanical engineering, general industrial products) still account for about half of the total, and will remain stable at the same time, Chinese investors have gradually shifted their interest to the German health service, environmental protection, technology and consumer goods industry etc.. For example, in 2016 China's first wholly-owned acquisition of a German private bank. In addition, private enterprises play a more and more important role in German investment.


M & A is mutually beneficial and win-win move


German public awareness of China's mergers and acquisitions increasingly positive. But in 2016 a number of large-scale mergers and acquisitions in Germany caused some controversy. In the German government intervention, in October last year, there were two cases of M & A was suspended. Wang Wei stressed that some of the arguments about mergers and acquisitions in China from the facts. The prices on the German merger is the value of the technology, market and brand, has a long-term strategic goal. In recent years, most of the German subsidiaries acquired are developing well, many Chinese investors in Germany for a serial acquisition, which indicates that the vast majority of China's acquisition of Germany is a mutually beneficial win-win move.


The latest annual economic assessment report submitted to the German Prime Minister Merkel shortly before the German Council of economic experts said in 2015 China German direct investment of about 2 billion euros, but only in the German foreign net investment 4.7% of the total. This figure compared to other countries and regions, such as Switzerland (14.4%), the United States (28.1%), the European Union (60.8%) there is still a big gap. The report recommends that Germany should remain open to Chinese investors. The federal government should be committed to ensuring an open market access, because it will be more conducive to improving international division of labor.


Chinese Embassy in Germany business department counselor Wang Weidong said, Sino German economic and trade cooperation is expanding from the traditional to the bilateral trade and investment cooperation, innovation development, regional development and other more areas, into the key stage of upgrading. He pointed out that the world economic recovery is weak, with the digital, networking as a feature of a new round of industrial revolution is pregnant with the rise of both companies, the government has to further strengthen the internal needs of cooperation. From the point of view of enterprise cooperation, the two countries complement each other's strengths, powerful alliances, in terms of digital transformation and international operations are the ideal partner. It is expected that the next period of time, two-way investment will continue the momentum of rapid growth, especially small and medium enterprises, private enterprises will continue to increase investment. The two sides will carry out in-depth cooperation in the design, development, testing, service, management and other links.


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