Why Are Chinese Companies Keen on Acquiring European Companies?

esse-pto-logo-e1322153301312-240x75Chinese companies seem to become frequent participants in oversea merger and acquisition activities these days.
It is the latest move by Shandong Heavy Industry Group to acquire Italian luxury-yacht builder Ferretti yachts that seals a hectic year of shopping European companies by Chinese companies in 2011. “We now own some hundreds of patents and rights to use eight brands of Ferretti, which is very helpful for improving our capacity in making general-purpose motors”, said a principal of Shandong Heavy Industry Group.
Why did the Shandong company spend 350 million euros on Ferretti? Ferretti’s IPRs are the only answer. European companies’ patents, brands and distribution channels are central in Chinese companies’ M&A decision-making, which is confirmed by several Chinese companies which are about to start their own incursion.
Latest statistics showed, more than 300 M&A transactions involving Chinese buyer materialized in 2011, and both sides win big via patent or trademark transactions. For instance, Lepu Medical Technology Company purchased 70% of Netherlands Kemaidi Company, Zhejiang Wolong Holding Company acquired 97.4% of Austria-based ATB Group, one of the three electric motor manufacturers in Europe, Dalian Rubber and
Plastic Machinery Company purchased Buzuluke Company of Czech Republic, the leading rubber and machinery company in Europe.

(Source: SIPO 2012-02-03)
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