Voice from China - 3rd edition 2019
Quarterly update on the M&A market in China
How will investors and entrepreneurs navigate the battleground in the ongoing trade war between the US and China?
Oaklins’ specialist Angela Chen looks at the possible survival strategies for companies with an urgent need to restructure their supply chains and access new markets. The US ban on Huawei’s purchase of US software and components has created difficulties for the technology giant in the short term, and provoked pushback in the form of a supplier blacklist from China’s Ministry of Commerce, but in the long term the situation may prove beneficial.
The deterioration of the relationship between China and the US has generated great turbulence for thousands of industries all over the globe. To survive under these conditions, investors and entrepreneurs are urgently seeking to restructure their supply chains and gain access to new markets.ANGELA CHEN, MANAGING DIRECTOR, OAKLINS, CHINA
Chen explains how the resulting impetus for Chinese firms to become less dependent on US technical know-how will likely accelerate the Chinese government’s investment in homegrown technology and increase support for foreign investment in high-tech startups. With Apple and other US high-tech companies eyeing the rapidly growing Chinese consumer market and keen to expand their presence, China’s M&A market looks likely to rebound.This edition provides an overview of the nonferrous metal mining and processing industry, which depends on China as both the world’s largest producer and consumer.
With Chinese companies attempting to gain market share via overseas mergers and a major industry consolidation expected to take place within the next five years, the survival of the fittest may depend on securing the right cross-border M&A deals.
We look at the transactions of three industry leaders that exemplify this strategy. In addition, we feature the case study of world-famous copper processor and exporter Zhejiang Hailiang Co., Ltd.’s acquisition of copper manufacturer KME Germany GmbH & Co. KG and its five subsidiaries, which allows the Chinese company to expand its European operations.