More Chinese acquisitions expected in Germany - Hengeler Mueller
More Chinese acquisitions expected in Germany - Hengeler Mueller
More Chinese acquisitions expected in Germany - Hengeler Mueller
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<strong>More</strong> <strong>Ch<strong>in</strong>ese</strong> <strong>acquisitions</strong> <strong>expected</strong> <strong>in</strong> <strong>Germany</strong><br />
On the occasion of the Ch<strong>in</strong>a Day, supported by <strong>Hengeler</strong> <strong>Mueller</strong> and organised by the<br />
German Association of the Automotive Industry (VDA) at the IAA 2012, Christian Möller,<br />
partner for M&A and member of <strong>Hengeler</strong> <strong>Mueller</strong>'s Ch<strong>in</strong>a Desk, said, “After the<br />
successful takeovers of German companies by <strong>Ch<strong>in</strong>ese</strong> buyers, we expect further<br />
transactions <strong>in</strong> the next twelve months, also <strong>in</strong> the automotive supply <strong>in</strong>dustry. German<br />
technical expertise comb<strong>in</strong>ed with the access of <strong>Ch<strong>in</strong>ese</strong> companies to their home<br />
market and the growth markets of South East Asia is a highly competitive setup that<br />
will become further established.”<br />
Foreign <strong>acquisitions</strong> by <strong>Ch<strong>in</strong>ese</strong> companies have more than trebled s<strong>in</strong>ce 2005 – to 177<br />
transactions last year. Western Europe is an important target for <strong>Ch<strong>in</strong>ese</strong> M&A with a<br />
share of 29 percent of the deal volume <strong>in</strong> 2011 (deal volume 2011 <strong>in</strong> US was 20 percent).<br />
The number of high-volume company <strong>acquisitions</strong> over US$1 billion rose to 22 deals <strong>in</strong><br />
the period from May 2011 to June 2012. While many <strong>acquisitions</strong> were <strong>in</strong> the<br />
commodities sector, the number of <strong>in</strong>vestments is grow<strong>in</strong>g <strong>in</strong> the <strong>in</strong>dustrial sector too.<br />
Yet many German-<strong>Ch<strong>in</strong>ese</strong> transactions fail at the negotiat<strong>in</strong>g stage. Changfeng Tu,<br />
Senior Associate at <strong>Hengeler</strong> <strong>Mueller</strong> and member of <strong>Hengeler</strong> <strong>Mueller</strong>’s Ch<strong>in</strong>a Desk,<br />
said, “There is a lot of room for misunderstand<strong>in</strong>gs <strong>in</strong> German-<strong>Ch<strong>in</strong>ese</strong> corporate<br />
takeovers. This is due to cultural factors and to the different procedures and approaches<br />
when it comes to transactions. For <strong>in</strong>stance, the approval process <strong>in</strong> Ch<strong>in</strong>a for foreign<br />
<strong>in</strong>vestments is extremely complex. Guid<strong>in</strong>g the transaction <strong>in</strong> a focussed way and tak<strong>in</strong>g<br />
these issues <strong>in</strong>to account helps everyone to achieve their objectives successfully.”
<strong>Hengeler</strong> <strong>Mueller</strong> recently advised Weichai Power, a lead<strong>in</strong>g <strong>Ch<strong>in</strong>ese</strong> manufacturer of<br />
production equipment and supplier to the automobile <strong>in</strong>dustry, <strong>in</strong> its strategic<br />
partnership with KION, which is the largest <strong>Ch<strong>in</strong>ese</strong> direct <strong>in</strong>vestment <strong>in</strong> <strong>Germany</strong> to<br />
date. <strong>Hengeler</strong> <strong>Mueller</strong> regularly acts on behalf of <strong>Ch<strong>in</strong>ese</strong> <strong>in</strong>vestors <strong>in</strong> <strong>Germany</strong> and of<br />
sellers of German companies to <strong>Ch<strong>in</strong>ese</strong> <strong>in</strong>vestors. <strong>Hengeler</strong> <strong>Mueller</strong> also advises<br />
German companies on <strong>acquisitions</strong> <strong>in</strong> Ch<strong>in</strong>a.<br />
Partner and Press Contacts<br />
Christian Möller<br />
- Partner -<br />
<strong>Hengeler</strong> <strong>Mueller</strong><br />
Partnerschaft von Rechtsanwaelten<br />
Benrather Strasse 18-20<br />
40213 Düsseldorf<br />
<strong>Germany</strong><br />
Tel:. +49 211 8304-131<br />
christian.moeller@hengeler.com<br />
Christian Seidenabel<br />
- Director Communications -<br />
<strong>Hengeler</strong> <strong>Mueller</strong><br />
Partnerschaft von Rechtsanwaelten<br />
Bockenheimer Landstrasse 24<br />
60323 Frankfurt<br />
<strong>Germany</strong><br />
Tel.: +49 69 17095-207<br />
christian.seidenabel@hengeler.com<br />
26 September 2012
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