Title: Chinese direct investments in Germany: threat or opportunity for the German part of the merger or acquisition

Authors: Bernd Britzelmaier; Caroline Flum; Martina Gog

Addresses: Pforzheim University, Tiefenbronner Str. 65, 75175 Pforzheim, Germany ' Pforzheim University, Tiefenbronner Str. 65, 75175 Pforzheim, Germany ' Pforzheim University, Tiefenbronner Str. 65, 75175 Pforzheim, Germany

Abstract: During the last decade China increased its foreign direct investments significantly. Following the governmental strategy of 'Swarm out' mergers and acquisitions took place all around the globe including a significant number of investments in Germany. These investments were discussed in German Mass Media controversially. Where some protagonists assume economic growth and benefits for the companies involved others have the fear of a huge knowledge drain from Germany to China. This led to the idea to do some research on the development and implications of Chinese direct investments in Germany. We wanted to find out whether the German part of mergers or acquisitions would consider it rather as a threat or an opportunity. To learn more about the implications we followed a qualitative approach and developed based on literature a questionnaire for interviews. Out of the total M&As undertaken by Chinese investors in Germany during the period of 2000 and 2013 eight interview partners were chosen out of core branches of the German economy. The findings are promising; a huge portion of the interview partners is convinced that the Chinese investment led more or less to a win-win-situation for both sides. Based on the main findings a conclusion is drawn and an outlook is given.

Keywords: China; Germany; foreign direct investment; FDI; M&A.

DOI: 10.1504/WREMSD.2017.086298

World Review of Entrepreneurship, Management and Sustainable Development, 2017 Vol.13 No.5/6, pp.492 - 520

Available online: 02 May 2017 *

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