Sino-German Transactions

Europe is still the prime focus of Chinese M&A investments while Germany is the European country drawing the most interest from Chinese pursuers. “We found that many deep pocket Chinese acquirers primarily aim to obtain high-end, world-class technology assets or global premium brands.

There are many advantages for the sellers as well as for the buyers. Surprisingly many German sellers retain their independence in Sino-German transactions, as Chinese buyers appreciate the technical, technological and management know-how of German companies and are additionally barely able to replace the existing management with own equivalent resources.

Many German companies value a takeover by a Chinese investor positively as they expect a structural improvement of their company within the framework of a transaction”, says Felix Leitloff, Director at Livingstone.