Takeover Trend

Made in Germany, Sold to China

osram Ralph Orlowski Bloomberg
Trade fair visitors check out Osram's LED display. The company's lamp division is the latest in a series of takeovers by Chinese companies. Photo: Ralph Orlowski/Bloomberg
  • Why it matters

    Why it matters

    The wave of Chinese takeovers of German firms is likely only beginning. It’s just a matter of time until a DAX-listed company becomes a target.

  • Facts

    Facts

    • Chinese investment in foreign companies more than tripled in value worldwide between 2013 and 2015 — from $154 billion to $481 billion.
    • So far this year, €10.6 billion has been spent on German companies.
    • German industry has seen a series of high-profile Chinese takeovers this year, including robot maker Kuka and a division of the Osram lighting company.
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  • Audio

    Audio

  • Pdf

Chinese takeover bids in Germany are on the rise. First Chinese household appliance corporation Midea took a majority stake in Kuka, then a Chinese consortium bought the lamps unit of lighting giant Osram. Combined, the two deals come to €5 billion, or $5.58 billion.

Germany is now top of the list for Chinese overseas investments.

Michael Buckley, head of M&A at the largest Chinese exchange-listed investment bank Citic, said Chemchina’s takeover of Syngenta, the Swiss seed and pesticide company, was a particularly “clear sign of a new Chinese confidence.”

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