A high-level Chinese delegation will arrive in Europe this weekend in search of potential acquisitions, marking the first mission of its kind, state media reported on Wednesday.
The delegation will primarily seek companies with strong manufacturing capabilities, utilizing clean energy and štede okoliš, and it is unlikely that financial firms will appear on the ‘šoping list,’ reported China Daily. "We will explore opportunities for financial participation in European companies," said Minister of Commerce Chen Deming, head of the delegation that has just returned from a visit to Europe aimed at purchasing high-tech equipment. This visit to Švicarskoj, Njemačkoj, Velikoj Britaniji, and Španjolskoj resulted in deals worth over $13 billion.
"The global economic crisis allows Chinese companies, with their rich cash reserves, to engage in strategic cross-border cooperation with international companies that are short on cash," said Li Jian, a researcher at the Chinese Academy of International Trade and Economic Cooperation. The value of mergers and acquisitions in China sharply declined in the second half of last year, according to recently released data from PricewaterhouseCoopers. The accounting firm recorded 543 acquisition agreements with a total value of $26.7 billion from July to November of last year. This is a 49% decrease compared to $52.5 billion and 93 agreements made in the same period a year earlier, the data showed. The conclusion of transaction agreements among Chinese companies is also slowing down due to weaker exports and losses in the stock market, reported PricewaterhouseCoopers. (H)
