Chinese M&A Activities in Germany: An exploratory study on an under-researched phenomenon

Abstract: This exploratory thesis examines Chinese M&A activities in Germany since 2002 by incorporating findings from industry reports, empirical data, and a questionnaire filled out by AutoCo (anonymized) under a mixed methods approach. Typical German targets are active in the Manufacturing industry, have poor financial profiles, and obtain traits such as technology, access to international markets and complementary products that motivated Chinese investors to acquire. After being acquired by Chinese companies, the German subsidiaries on average improve regarding EBIT margins, cash positions and liquidity, while confirming the "light-touch" approach in terms of organizational integration. Post-acquisition integration corresponds to pre-acquisition motivations and in the questionnaire results, the synergy realization exceeded the level described by the German management in previous cases. Furthermore, AutoCo expresses a high satisfaction level of transaction experience, post-acquisition integration and collaboration. Overall, this thesis presents findings on pre- and post-acquisition considerations and thus provides insights into an under-researched phenomenon.