TAKEOVER DRIVEN

Explaining China’s Buying Binge

WMF_Filtered PR
The WMF chain could be another Chinese aquisition.
  • Why it matters

    Why it matters

    For the most part there are no constraints on China’s buying spree. The same is not true for foreign purchasers in China, who face bureaucratic and political obstacles.

  • Facts

    Facts

    • In 2015, about €20 billion flowed into Europe for participations or complete takeovers.
    • In January, state-owned Chemchina acquired the Munich-based KraussMaffei Group, which makes plastic and rubber processing machinery, for about $1 billion.
    • China wants to make the leap to goods and services of higher value — because only in this way can Chinese companies pay increasing wages of their labor forces.
  • Audio

    Audio

  • Pdf

The long list of European firms being taken over by Chinese investors is growing all the time — Volvo, Putzmeister, KraussMaffei and now maybe the kitchen-equipment specialist WMF. Companies from China are on a shopping spree of well-known European brands, and traditional German firms are especially popular.

Financial considerations scarcely play a role, as demonstrated by €43 billion recently offered by the state-owned conglomerate Chemchina for Swiss agrochemical giant Syngenta.

China is flush with money. After years of a flourishing economy, buyers are sitting on heaps of cash and, if necessary, the government in Beijing is always willing to add to the war chest.

In 2015, about €20 billion flowed into Europe for participations or complete takeovers. The buying frenzy will likely continue in 2016.

We hope you enjoyed this free article.

Subscribe today and get full access to market-moving news in Europe's leading economy.