Corporate Audit

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 (97)

  1. Janeiro 13, 2021

    drugstore makeup best drug store primer indian pharmacy online

  2. Janeiro 21, 2021

    I am extremely impressed along with your writing talents as
    well as with the structure on your blog. Is that this a paid topic or did you modify it yourself?
    Either way keep up the excellent quality writing,
    it is rare to peer a nice blog like this one nowadays..

  3. Tommyrom
    Janeiro 24, 2021
  4. Janeiro 26, 2021
  5. Janeiro 26, 2021
  6. Janeiro 26, 2021
  7. Janeiro 26, 2021
  8. Janeiro 26, 2021
  9. Janeiro 27, 2021
  10. Janeiro 27, 2021
  11. Janeiro 27, 2021
  12. Janeiro 27, 2021
  13. Janeiro 28, 2021
  14. RonaldJoype
    Fevereiro 1, 2021
  15. RonaldJoype
    Fevereiro 1, 2021
  16. RonaldJoype
    Fevereiro 1, 2021
  17. RonaldJoype
    Fevereiro 1, 2021
  18. RonaldJoype
    Fevereiro 1, 2021
  19. RonaldJoype
    Fevereiro 1, 2021
  20. RonaldJoype
    Fevereiro 1, 2021
  21. Fevereiro 4, 2021

    us pharmacy no prior prescription use paypal to buy viagra canada drugs online pharmacy

  22. Fevereiro 6, 2021

    cheap viagra hawaii whats better viagra or cialis online viagra montreal

  23. Fevereiro 6, 2021

    viagra no prescriptin generic viagra australia buy viagra without prescription overnight shipping

  24. Fevereiro 6, 2021

    viagra 2 day delivery viagra 25 or 50? levitra and viagra perth australia

  25. Fevereiro 7, 2021

    pharmacy online store pharmacy online shopping canadian drugstore

  26. Fevereiro 7, 2021

    cheap prescription drugs trusted overseas pharmacies canadian pharmacy without prescription

  27. Fevereiro 8, 2021

    canadian drug store canada pharmacies online pharmacy cialis pharmacy online

  28. RichardRip
    Fevereiro 8, 2021
  29. Fevereiro 8, 2021

    canada pharmacy no prescription prescription drug assistance buy drugs online

  30. Fevereiro 8, 2021

    cialis professional india how much does cialis cost in india

  31. Fevereiro 9, 2021

    ed meds online cialis pharmacy online best canadian mail order pharmacies

  32. BrianPable
    Fevereiro 10, 2021
  33. Fevereiro 11, 2021

    cialis kidney disease different kinds of cialis

  34. DavidOpind
    Fevereiro 11, 2021
  35. Fevereiro 11, 2021

    cialis and ritalin cialis online no prescription canada que choisir cialis ou viagra

  36. Matthewgried
    Fevereiro 11, 2021
  37. JosephSob
    Fevereiro 12, 2021
  38. JosephSob
    Fevereiro 12, 2021
  39. JosephSob
    Fevereiro 12, 2021
  40. JosephSob
    Fevereiro 12, 2021
  41. JosephSob
    Fevereiro 12, 2021
  42. TimothyEmbot
    Fevereiro 13, 2021
  43. Jeremyjah
    Fevereiro 13, 2021
  44. Fevereiro 13, 2021

    payday loan 50 pound safe online payday loan lenders cashwell consumer loans columbia sc

  45. Fevereiro 14, 2021

    cialis generic cipla buy cialis cialis daily

  46. Fevereiro 14, 2021

    can you buy viagra over the counter usa viagra 100mg online in india order sildenafil citrate

  47. Fevereiro 14, 2021

    stop ach withdrawals payday loans cash advance duncan ok cash loans in asheville

  48. Fevereiro 15, 2021

    guaranteed poor credit payday loans payday loan portland tx payday loan of 500

  49. Fevereiro 16, 2021

    canadian pharmacy cheap cialis el cialis es bueno para la eyaculacion precoz preise cialis spanien

  50. Fevereiro 18, 2021

    spokane valley payday loans payday loan hydra fund loan calculator in advance

  51. Charlesren
    Fevereiro 23, 2021
  52. Charlesren
    Fevereiro 23, 2021
  53. Fevereiro 23, 2021

    I am constantly looking online for posts that can facilitate me. Thx! https://hivmedi.com hiv medication

  54. Charlesren
    Fevereiro 23, 2021
  55. RobertHot
    Fevereiro 26, 2021
  56. Fevereiro 27, 2021

    v59k8 9noi9 5lql

  57. FidelEvisp
    Fevereiro 28, 2021
  58. FidelEvisp
    Fevereiro 28, 2021
  59. FidelEvisp
    Fevereiro 28, 2021
  60. FidelEvisp
    Fevereiro 28, 2021
  61. FidelEvisp
    Fevereiro 28, 2021
  62. FidelEvisp
    Fevereiro 28, 2021
  63. CharlesSwefs
    Fevereiro 28, 2021
  64. Março 1, 2021

    pomegranate juice and viagra together liquid viagra viagra information

  65. Leke Kremi Satın almak herkes isteyebilir fakat en iyi leke kremini alarak cildinize yardımcı olmanız gerekmekte
    Markalar instagram sayesinde büyürken hemde yeni proje ve çalışmalarını da duyurmak amacıyla kullanmaktadır.

    Bu yüzden en iyi leke kremi için lekekremim.com tercih sebebidir.

    .

  66. Haroldababe
    Março 2, 2021

Deixe uma resposta

O seu endereço de email não será publicado.