March 01, 2017
China is second only to the United States as the largest non-European investor in European companies in recent years. A new multimedia gallery from Latham & Watkins helps market participants explore the factors driving the increased activity, as well as the unique challenges and opportunities now facing Chinese investors in Europe.
“Many Chinese companies have looked outward to find their next source of growth in a slowing domestic economy,” notes Hong Kong M&A partner Frank Sun. “At the same time, European targets have continued to provide brand names and cutting-edge technologies that, when combined with the huge consumer base in China, create unique synergies.”
Yilong Du, Beijing Office Managing Partner, adds: “A number of developments in global markets and policy — including China’s One Belt, One Road initiative, which specifically focuses on encouraging outbound M&A — have coalesced to create a unique opportunity for Chinese investors, with European companies being particularly attractive takeover targets.”
Harald Selzner, a partner in the Düsseldorf office and co-chair of the global M&A Practice, says that the wave of Chinese investments may also benefit European markets. “For Europeans, it’s quite clear that foreign investments are critical in order to develop the European economy, resulting in a welcoming of global capital, including from China,” according to Selzner. “Only time will tell whether or not the unprecedented momentum we saw in 2016 can be sustained — but either way, the outcome will help shape the next chapter of the global M&A landscape.”
Latham’s multimedia gallery includes animated infographics and videos featuring Latham partners based in Europe and Asia, as well as soundbites from a recent conference, “Acquiring European Assets: What Chinese Investors Need to Know About Entering Europe,” which the firm hosted in Beijing in conjunction with China International Capital Corporation and KPMG.