Nearly no Chinese takeovers
Author: Thomas Wandler
Less business between China and Germany
In the first half of 2019, the number of company takeovers by Chinese investors fell considerably. The number fell from 25 to 11 compared to the same period of the previous year. The investment volume decreased from 10.1 billion dollars to 0.5. This was announced by the consultancy EY.
According to EY, only 81 acquisitions and shareholdings were made throughout Europe in the first half of the year. This is around 28 percent less than in the previous year. Accordingly, the investment volume in Europe fell by 84 percent to 2.4 billion dollars.
“Although transaction activities in Germany and Europe were significantly lower in the first half of the year than in the same period of the previous year, they nevertheless stabilized at a low level in the second half of 2018,” says EY expert Yi Sun. “With that the bottom should be reached.”
The reason for this is the currently critical economic situation in China. The trade conflict with the USA is also a problem for the People’s Republic. In addition, “relatively few attractive takeover candidates” are present on the market for Chinese investors.