Chinese companies in Germany 2015 – Growth in direct investment

Chinese companies in Germany 2015 - Growth in direct investment Oct. 9 – The increase in Chinese investment in Germany helps to safeguard growth and creating new jobs, as well as increases tax revenue and adds value. For Chinese investors, the acquisition of strong and healthy companies has developed into a strategy approach, as a result of expanding their own competitiveness, enjoying German business conditions in product quality and skilled workforce.

Chinese companies enjoy a strong presence in Germany

As Germany offers high standing in the area of research and development which Chinese invested companies and Chinese investors value highly and benefit from. China is one of the biggest growth markets worldwide, and Germany offers Chinese companies access to one of the wealthiest markets in the world. The presence of Chinese companies in Germany benefits the German economy. The significant growth in innovative strength demonstrated by these companies in recent years also has a positive knock-on effect on the Chinese economic area.

For many Chinese investors, the acquisition of healthy and flourishing companies has developed into a strategy by which they can expand their own competitiveness that can be beneficial to both sides- China and Germany. There are plenty opportunities for closer cooperation in the areas of environmental technology and energy, mobility solutions and medical technology, in particular, the German research landscape make available superb investment opportunities, which are increasingly being seized by Chinese investors, lead to growth of Chinese investment in Germany.

The motivation of Chinese companies invested in Germany

In fact, if you know the level of China industrial development, you will understand that the true goal for the Chinese companies in German – They do not seek to dismantle German factories and relocate them wholesale to China. Instead, they want to take advantage of German expertise in innovative technology. Many of the Chinese companies investing in Germany have done so with the intention of staying. Whether they will be successful in this aim depends, of course, on their commercial success and acceptance by customers.

Chinese companies are particularly value durability and stability of the German firms, they also interested in innovative technologies and superior brands, there are abundant of choices in this respect in Germany. Chinese government wisely focus on its investment fields in the German engineering and technology in which Germany traditionally excels and in which it has a large numbers, reputable brands and steady businesses. Chinese companies obviously want to establish a foothold in Germany, and other developed economies of the world as well, and grow into truly global players.

Chinese investors made deals with German Medium-sized businesses 2015

Chinese companies are investing in a wider range of industries, they are increasingly targeting the food, commercial real estate, technology and financial sectors in transactions that have driven Chinese investment values to a record high. Chinese investors are noticeably taking opportunities in investing in more stable sectors. Yet these Chinese investments might also lead to the acquisition of best medium-sized German enterprises, such as German company -Putzmeister, a manufacturer of concrete pumps, and the takeover of German hidden champions by Chinese companies. Recently, there were five worthy deals made by the Chinese investors with German firms, update deals Chinese investment in Germany 2015:

Chinese investment in Germany 2015 deal 1

Huapont Life Sciences Acquires Rheintal Klinik- Date: 17 Sep 2015 – Huapont Life Sciences Co., Ltd. announced on September 16 that it has acquired 100% limited partner interest in Rheintal-Klinik GmbH & Co. Porten KG in a EUR 5.87m deal (RMB 42.48m) through its wholly-owned tier 2 subsidiary Rheital-Klinik Beteiligungs GmbH. Rheintal Klinik GmbH & Co. Porten KG is headquartered in Bad Krozingen and provides rehabilitation and nursing services with a focus on orthopedics, internal medicine, sports injuries, and cardiovascular and venous diseases. Huapont Life Sciences sees this acquisition as an important step towards expanding into the rehabilitation therapy and medical cosmetology sectors.

Chinese investment in Germany 2015 deal 2

Ellassay to Purchase Laurèl Fashion Brand- Date: 11 Sep 2015- Shenzhen Ellassay Fashion Co., Ltd. announced on September 8 that it intends to invest EUR 11.18m in cash to purchase full control of East Light International Investment (Hong Kong) Ltd., which distributes the German fashion brand Laurèl GMBH in mainland China. Founded in 1978 in Munich, Laurèl was formerly one of three luxury brands owned by Escada AG, an international fashion group specializing in women’s designer clothes. The brand operates over 1,000 retail stores (10 of which are in China) in more than 30 countries. Ellassay has released a statement that it will take over all of Laurel’s brands and all its stores in mainland China, and will also sell the brand in markets outside of China. Ellassay seeks to apply its expertise in design, marketing and supply chain management to make the German brand more profitable in China.

Chinese investment in Germany 2015 deal 3

DEA General Aviation to acquire Germany’s XtremeAir – Date: 06 Aug 2015 – DEA General Aviation Holding Co., Ltd. announced on August 5 that its wholly-owned subsidiary in Germany, Rotor Schmiede GmbH, intends to acquire a 100% interest in Germany’s now bankrupt Xtremeair for EUR 3.6m. This acquisition will cover all of XtremeAir’s assets, business operations and outstanding debts. Founded in 2015, and headquartered in Magdeburg, XtremeAir is Germany’s leading aircraft manufacturer developing and manufacturing fixed-wing aircrafts. The company has filed for bankruptcy protection due to a shortage of funds, but still retains over 40 employees and normal business operations. According to DEA General Aviation, its acquisition of XtremeAir will broaden its business scope, and represents an important step towards overseas expansion.

Chinese investment in Germany 2015 deal 4

CIC to acquire German gas station operator – Date: 02 Jul 2015 – China Investment Corporation (CIC) is acquiring Tank & Rast for EUR 3b. This would be the largest Chinese acquisition of a German company. In 2004, UK-based Terra Firma Capital Partners purchased Tank & Rast from its previous stakeholders (Allianz Capital Partners, Apax Partners and Deutsche Lufthansa Airlines) for EUR 1b, and later sold 50% of its holdings to the investment arm of Deutsche Bank. Operating around 350 gas stations and 390 service stations along Germany’s motorways, Tank & Rast reported an EBITA of EUR 235m for 2013. Founded in 2007, CIC is a Chinese SOE approved by the State Council to manage ETF investments. Its overseas assets are valued at approximately USD 220b.

Chinese investment in Germany 2015 deal 5

Anhui Zhongding acquires Germany’s WEGU for €95m-Date: 04 Feb 2015 – Anhui Zhongding Holding Co, a Chinese auto component maker, said on Tuesday that its wholly owned European subsidiary has agreed to spend €95m to take over German shock absorber manufacturer WEGU. WEGU was founded in 1949 and has over 20 R&D personnel specializing in shock resistance and noise reduction. The company posted €26.7m in revenues and €3.98m in earnings for 1H 2014. Zhongding expects WEGU’s technology to boost the quality of its products and help it crack into the market for high-end vehicles. For the List of Chinese Companies Invested in Germany available upon request, please contact with DCCC or email to: info@dccchina.org