The rush of foreign investors on German companies. The interest of Chinese companies has fallen significantly. The data of the consulting and audit firms, EY and PwC. EY, this year there were 34 Acquisitions or investments by companies from China, such as the “Frankfurter Allgemeine Zeitung” reported on Thursday. This is the lowest value in five years and a halving compared with the peak in 2016. In the past year, there had been EY, 54 transactions in 2016, it was still 68.
Overall, are in great demand of German companies for foreign investors. PwC anticipates for the full year, from 815 to 850 transactions. Until the middle of November, 732, announced Deals of firms and financial investors from abroad were counted. Most of the buyer came as in previous years, from the United States (129 Deals). At number two in the UK followed until mid-November with 94 Deals and Switzerland with 86 transactions. Financial investors coped with the information that more than a third of the participation.
“of Course, the relative attractiveness of German companies is based also on the problems of other European sites – so first of the debt crisis in southern Europe and then the Brexit vote in the UK,” explained PwC expert Steve Roberts. In addition, German companies would apply to foreign investors as a solid.
The interest of Chinese companies on the German companies is expected to rise in EY, for the time being, however. “We assume that the number stabilizes in the coming year,” said Yi Sun, China business, responsible for EY-Manager, the “Frankfurter Allgemeine Zeitung”. “Until we see again a slight increase, it will take a little longer.”
The transaction volume fell, according to preliminary data of 13.7 billion dollars last year to a little more than 10.2 billion dollars by 2018. More than the equivalent of eight billion dollars accounted for, therefore, solely on the entry of Li Shufu, the owner of the Chinese car manufacturer Geely, Daimler.
The Federal government had increased before Christmas, to protect against espionage and intellectual property, the hurdles for foreign investors. With a Change of the external economic regulation, the Cabinet reduced for sensitive areas the threshold at which the Federal government may consider a share acquisition by an Investor. This refers to investors outside of the European Union. Even if the competent Federal Ministry of economic Affairs was emphasized: “It is not a Lex China,” recently triggered the initial attempts by Chinese investors for discomfort in Berlin.