Finance & Business Image

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.

Web Genius Lab
December 15, 2018

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 (29)

  1. May 9, 2024

    Informative Site… Hello guys here are some links that contains information that you may find useful yourselves. It’s Worth Checking out 급전

  2. May 9, 2024

    Absolutely pent subject matter, appreciate it for selective information .대출

  3. May 10, 2024

    This is exactly what I needed to read today.대출

  4. May 10, 2024

    Consolidate Debt Loans Guide And Lender Tricks 소액대출

  5. May 11, 2024

    I’m impressed by your ability to explain complex concepts in a clear and concise manner.급전

  6. May 11, 2024

    Your article is thought-provoking and insightful.급전

  7. May 12, 2024

    Casino Games Online – Guide For Brand New Players 무료슬롯 (

  8. May 12, 2024

    Tips November 23 In An Internet Casino 프라그마틱 무료슬롯,,

  9. May 12, 2024

    Your passion for this topic shines through in your writing.급전

  10. May 12, 2024

    Payday Loan – Just What It And The Way That It Works 급전대출

  11. May 12, 2024

    Your article is a beacon of light in a sea of misinformation.대출

  12. May 13, 2024

    Sbi House Loan – Latest State Bank Housing Loan Prices 급전대출 (

  13. May 13, 2024

    It’s very interesting! If you need help, look here: link building

  14. May 13, 2024

    This article is a must-read for anyone interested in this topic.급전

  15. What’s The Reason Everyone Is Talking About
    Accident Attorneys In My Area Right Now Lyft accident attorney near me

  16. May 14, 2024

    Your writing style is both informative and engaging, thank you for sharing your expertise!급전

  17. May 14, 2024

    Your Family Will Thank You For Getting This Accident Attorney No Injury accident attorneys fort lauderdale (Regena)

  18. A Write-Up On The Thunder Birds Skill Stop Machine 카지노슬롯사이트

  19. Everything You Need To Learn About Find Accident Attorney accident attorney Oxnard

  20. May 15, 2024

    This was an enlightening post. I look forward to reading more from you.peakpulsesite

  21. May 15, 2024

    8 Tips To Up Your Attorney For Accident Claim Game utah accident attorney

  22. The Benefits And Disadvantages Of The Lending Company Credit Card Processing OK바로론대부,,

  23. May 16, 2024

    I really appreciate the thorough analysis you’ve provided here.swiftnook

  24. Roulette Strategies While Gambling Online 프라그마틱플레이

  25. May 17, 2024

    Choosing Choosing The Right Type Of Poker Chip 슬롯사이트

  26. May 18, 2024

    You always provide such detailed and well-researched content. Thank you!pulsepeak

  27. May 18, 2024

    10 Things Your Competitors Lean You On Star Porn porn kayleigh wanless – Derick

Leave a Reply

Your email address will not be published.