Business Meeting 2018

Chinese companies acquiring overseas are entering their third phase. During the first phase, the vast majority of outbound M&A deals were made to secure natural resources. The second wave of activity was largely about acquiring brands or technology and other capabilities that Chinese companies could use to help build their businesses at home.

Now, when companies look to acquire beyond China’s borders, it’s often to help them achieve the dual goals of winning at home and exporting abroad, enabling them to strengthen their domestic competitive stance while simultaneously positioning for global expansion, especially in other developing markets. This latest stage of M&A is helping Chinese companies gain market share in utilities, construction and Internet-based businesses in countries such as Brazil.

Client:
Web Genius Lab
Date:
December 15, 2018
Website:
yoursite.com
Category:
Corporate
Share:

The Winning Formula

The shift to using acquisitions to win both at home and overseas brings with it new and more complicated rules for success. Some companies have watched their deals falter, turning into cautionary tales. CNOOC invested too much in acquiring upstream natural resources, underplaying the risk from the oil price fluctuations that soured its $15.1 billion purchase of Canadian oil and gas producer Nexen. When CMCC bought Paktel, Pakistan’s fifth-largest telecom operator, for $460 million in 2007, the acquisition faltered for many reasons. It lacked a clear investment thesis, for example.

An expanding group of Chinese companies is learning how to avoid such mistakes, however, by applying more rigor to their acquisitions. For example, soon after a consortium including Shanghai Fosun Pharmaceutical acquired Ambrx, a US biopharmaceutical company, in 2015, Fosun named a new CEO and a new chief science officer for Ambrx, both of whom have strong US and China experience and were deftly able to handle the usual cross-cultural issues that surface during most outbound deals.

Incredible Benefits of Project

Data Analytics

Strategy experience and analytical expertise combine to enable decision making and create value.

Revenue Growth

Strategy experience and analytical expertise combine to enable decision making and create value.

Market Expansion

Strategy experience and analytical expertise combine to enable decision making and create value.

Appendix: Where are the deals?

Ride-hailing company DiDi illustrates how some acquirers are exercising far more caution than was common during the first two phases of China outbound M&A. The company made a solid strategic rationale for its recent acquisitions, as spelled out in an investment thesis, and followed up with more stringent due diligence.

While this arrangement works fine for most of Ruyi’s acquisitions, a stronger approach to integration is called for in different situations—for example, when acquiring a technology company in a developed market with the intention of bringing the technology back to China.

Comments (39)

  1. May 9, 2024

    Мобильная версия на основе браузера работает на любом устройстве.

  2. May 9, 2024

    Hello I am so glad I found your blog page, I really found you by error, while I was
    browsing on Askjeeve for something else, Anyhow I am here now and would just like to say thanks for a marvelous
    post and a all round enjoyable blog (I also love the theme/design), I don’t have time to read
    through it all at the moment but I have bookmarked it and
    also added in your RSS feeds, so when I have time I
    will be back to read much more, Please do keep up the superb jo.

  3. May 9, 2024

    I read this article fully about the difference of most up-to-date and previous technologies, it’s awesome article.

  4. May 10, 2024

    I know this site gives quality depending articles and extra stuff, is there any other web
    site which provides these kinds of information in quality?

  5. May 10, 2024

    I constantly spent my half an hour to read this web site’s articles every day along with a mug of coffee.

  6. May 10, 2024

    Hi there! I know this is somewhat off topic but I was wondering
    which blog platform are you using for this website?
    I’m getting fed up of WordPress because I’ve had issues with hackers and I’m looking at options for another platform.
    I would be awesome if you could point me in the direction of a good platform.

  7. May 10, 2024

    Good article. I certainly appreciate this site.
    Keep writing!

  8. May 10, 2024

    Awesome article.

  9. May 10, 2024

    magnificent submit, very informative. I’m wondering why the opposite experts of this sector do not understand this.
    You should continue your writing. I’m confident, you’ve a great readers’ base already!

  10. May 11, 2024

    This paragraph is really a nice one it helps new net people, who are wishing for blogging.

  11. May 11, 2024

    Excellent pieces. Keep posting such kind of information on your site.
    Im really impressed by your site.
    Hey there, You have done a fantastic job. I’ll definitely digg it
    and in my opinion suggest to my friends. I’m sure they’ll be benefited from this website.

  12. May 11, 2024

    I love it when folks come together and share views. Great website, keep it up!

  13. May 11, 2024

    For the reason that the admin of this web site is working, no uncertainty very shortly it will
    be well-known, due to its quality contents.

  14. May 11, 2024

    When someone writes an article he/she retains
    the idea of a user in his/her brain that how a user can know it.
    So that’s why this article is amazing. Thanks!

  15. May 11, 2024

    I was recommended this website by means of my cousin. I’m no longer positive whether or not this put up is written by means of him as no one else realize
    such designated approximately my trouble. You are amazing!
    Thanks!

  16. May 12, 2024

    See to it you have actually inspected package to use proxies and GSA SER
    will certainly scuff public proxies for you.

    Also visit my website :: Gsa ser link list

  17. May 12, 2024

    Excellent items from you, man. I have bear in mind
    your stuff previous to and you’re just extremely excellent.
    I really like what you’ve bought here, really like what you’re saying and the way in which
    you are saying it. You’re making it entertaining and you still take care
    of to stay it sensible. I can’t wait to learn much more
    from you. This is actually a great site.

  18. May 12, 2024

    Hi there! I’m at work browsing your blog from my new apple iphone!
    Just wanted to say I love reading your blog and look forward to all your posts!
    Carry on the excellent work!

  19. May 12, 2024

    Moz uses an all-in-one search engine optimization toolset, including
    functions for site audits, rank monitoring, and on-page
    optimization.

    Also visit my blog post – Gsa ser link list

  20. May 13, 2024

    of course like your website however you need to check the spelling on several of your posts.

    A number of them are rife with spelling problems
    and I to find it very troublesome to inform the reality however I will definitely come back again.

  21. May 13, 2024

    I like the helpful info you provide to your articles.
    I will bookmark your blog and check once more right here regularly.
    I am somewhat certain I will be informed plenty of new stuff right here!
    Best of luck for the next!

  22. May 14, 2024

    It’s an amazing paragraph for all the web users; they will obtain benefit from it
    I am sure.

  23. May 14, 2024

    I enjoy, result in I discovered just what I used to be taking a look for.
    You have ended my four day long hunt! God Bless you man.
    Have a great day. Bye

  24. May 14, 2024

    Having read this I believed it was extremely enlightening. I appreciate you finding the time
    and energy to put this informative article together.
    I once again find myself spending a significant amount of time both reading and leaving comments.
    But so what, it was still worthwhile!

  25. May 14, 2024

    You really make it seem so easy with your presentation but I find this matter to be actually something that I think I would never understand.
    It seems too complex and extremely broad for me. I’m looking forward for your next post, I will try to get the hang of it!

  26. May 15, 2024

    Remarkable things here. I’m very satisfied to see your
    article. Thanks a lot and I’m having a look ahead to contact you.

    Will you please drop me a mail?

  27. May 15, 2024

    of course like your web-site however you need to check
    the spelling on quite a few of your posts. A number of them are rife with spelling
    issues and I to find it very troublesome to tell the truth on the other hand I will definitely come back again.

  28. May 15, 2024

    For most recent news you have to go to see internet and on world-wide-web
    I found this web site as a finest site for hottest
    updates.

  29. May 16, 2024

    I was suggested this blog by my cousin. I am not sure whether this post is written by
    him as nobody else know such detailed about my difficulty. You are wonderful!
    Thanks!

  30. whoah this weblog is fantastic i like reading your posts.
    Stay up the great work! You know, lots of persons are searching around for this information, you
    could help them greatly.

  31. May 17, 2024

    Superb site you have here but I was wondering if you knew of
    any community forums that cover the same topics discussed in this article?
    I’d really love to be a part of community where I can get advice from other
    experienced individuals that share the same interest. If you
    have any recommendations, please let me know.
    Kudos!

  32. May 17, 2024

    Hey I know this is off topic but I was wondering
    if you knew of any widgets I could add to my
    blog that automatically tweet my newest twitter updates.
    I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something
    like this. Please let me know if you run into anything.

    I truly enjoy reading your blog and I look forward to your new updates.

  33. May 17, 2024

    I needed to thank you for this wonderful read!! I absolutely enjoyed every
    bit of it. I have you book-marked to check out new things you post…

  34. May 17, 2024

    Hello, i think that i saw you visited my website thus i came to “return the favor”.I’m
    trying to find things to improve my web site!I suppose
    its ok to use a few of your ideas!!

  35. May 17, 2024

    Great blog! Is your theme custom made or did you download it from somewhere?
    A design like yours with a few simple adjustements would really make my
    blog shine. Please let me know where you got your design.
    Many thanks

  36. May 18, 2024

    Hmm is anyone else experiencing problems with the pictures on this
    blog loading? I’m trying to find out if its a problem on my end or if it’s the blog.

    Any suggestions would be greatly appreciated.

  37. May 18, 2024

    Hey! I know this is somewhat off topic but I was wondering if you knew where
    I could locate a captcha plugin for my comment form?

    I’m using the same blog platform as yours and I’m
    having difficulty finding one? Thanks a lot!

  38. May 18, 2024

    That is really attention-grabbing, You are an overly skilled
    blogger. I’ve joined your rss feed and stay up for seeking more of
    your excellent post. Also, I’ve shared your site in my social networks

  39. May 18, 2024

    We stumbled over here by a different web page and thought I may as well
    check things out. I like what I see so now i am following you.
    Look forward to looking into your web page repeatedly.

Leave a Reply

Your email address will not be published.