Reuters: Investing in Germany The Chinese are more savvy

Source: Reuters

German businessman Norbert Xiao Yi was surprised by the red carpet courtesy he enjoyed during his trip to China at the end of last year and the speed with which he reached an acquisition agreement with China's *5655 construction machinery company. The boss of Sany Heavy Industry and the richest man in Chinese mainland personally acted as a tour guide, took Xiao Yi to visit the factory, and arranged for executives to accompany him to wait for the plane. "In Europe, no one would do that,"Concrete machineryXiao Yi, executive officer of the manufacturer, Putzmeister, said, "From the beginning, the Chinese made it clear that they wanted to buy our company immediately. ”
The acquisition gives Sany a technological advantage over its rivals, showing that Chinese investors are increasingly savvy with overseas M&A as an engine for growth, rather than just acquiring raw materials or patents.
Germany, Europe's *5655 economy, has given birth to a large number of small and medium-sized enterprises (SMEs) known for their technology exports, which is particularly attractive to Chinese companies that are looking to build an international image. The European debt crisis has made some German and European companies cheaper in the eyes of Chinese investors. "We are looking forward to a wave of mergers and acquisitions between China and Germany." So says a user of Ernst & Young. In Germany, there are now as many as 20 mergers and acquisitions by Chinese, some of which are worth as much as 1 billion euros – more than any other European country, compared with six in 2008 and 15 last year.
According to German trade agencies, 158 Chinese companies carried out investment projects in Germany last year, while the number of companies from the United States, Switzerland and France was 110, 91 and 53 respectively. "China is [today] the most important investor in Germany." Michael Pfeiffer, Chairman of the German Trade & Invest Agency, said.
According to the Bundesbank, China contributed 15.5 billion euros of the 93 billion euros of Germany's net capital investment in 2010. "Five to seven years ago, we never saw Chinese bidders. Now they are all the time, professional and well prepared. The CEO of a large German private equity firm said the Chinese were increasingly becoming their strong competitors.
When investing overseas, Chinese companies are increasingly focusing on R&D capabilities, well-known brands and mature sales networks. Moritz Schönke, an accountant at KPMG and a focus on Sino-German M&A, says: "On the technology front, Chinese companies have realised that talent is far more important than future planning. ”
During a visit to China in February, German Chancellor Angela Merkel told Chinese leaders and business executives from both countries that "Germany welcomes Chinese companies to invest." "In the past, such meetings have been dominated by calls for China to open its market to German products, and this shift in power is very clear.