China’s Anbang acquired Dutch Vivat after a year made amazing turnover

China's Anbang acquired Dutch Vivat after a year made amazing turnover Nov. 11 – After China’s Anbang Insurance Group bought the Dutch insurer Vivat one year, within a year period, China Anbang hauled up a wonder by revolving the loss-making entity into a profitable unit through its efficiency management and market-centric strategies. Now China Anbang turns Dutch Vivat into effective profit-maker. China outbound merger & acquisition deals made good tune in the Netherlands.

Anbang turns Dutch Vivat into profit-maker is one of effective China M&A deals in the Netherlands. this deal made a significant sense for evaluation of how China merger acquisition deals improves management efficiency and helps the European company to deliver record net profits.

The Vivat story now revolved into a new chapter with fresh revenue strength , in the first half of 2016, Vivat delivered a record net profit of 578 million euros ($649 million) , according to Vivat results released on Aug 31. The development story was that Anbang acquired Vivat in July 2015 with a symbolic 1 euro and a capital investment. Vivat is the former insurance arm of Dutch financial institution SNS Reaal NV. Anbang appreciated Vivat’s history of more than 100 years and its status as one of the top six insurance companies in the Netherlands.

China Anbang’s success is being hailed as a template for a successful post-merger integration that can be followed by other Chinese companies.It comes at a time when Chinese outbound acquisitions are reaching record levels. Unlike most Chinese acquisitions, which only inject capital and leave business decisions to existing overseas management teams, Anbang became actively involved in Vivat’s management and its strategic focus.

Dutch Vivat CEO Ron van Oijen says Anbang enhanced Vivat’s profitability by abolishing unprofitable businesses, optimizing asset allocation and building up Vivat’s core business model in products, service and channel innovation. China Anbang also ensured effective implementation of the strategies through optimization of governance, organizational structure and allocation of personnel.

Unlike the M&A activity undertaken by Chinese companies in the resource sector in developing regions of Asia, Africa and Latin America, China Anbang was able to achieve success in Europe, the birthplace of the modern financial market. Under the management of China Anbang, century-old Dutch Vivat made a quick turnaround, proving that Anbang has the advanced management experience and ability regarding international resource integration. This indicates how Chinese companies are gradually evolving within the global marketplace. Experts think that version 1.0 of the Chinese companies relying on capital investment to gain overseas footholds has been replaced by version 2.0, in which Chinese companies export their business models and management culture. For China’s Outbound Mergers & Acquisitions in Netherlands 2016 Report available upon request, please contact with DCCC, or email to: info@dcchian.org