Chinese investors have a powerful attraction for companies in the European Union and its objectives are increasingly high profile. In recent days, which have shown interest in a compound 18-building in Potsdamer Platz in Berlin and the Italian tire manufacturer Pirelli. For some inexplicable reason, Europe considers Chinese investors, whether state-owned, milder than, say, the Russians.
Until 2011, China was mainly a European investment receiver, but after the debt crisis drove down asset prices. Some governments are desperate to privatize, and venerable corporations received less demanding with potential investors. Chinese shoppers buy Volvo in Sweden, a large stake in Peugeot Citroen and Sonia Rykiel fashion house in France, the port Piraeus, Greece, Pizza Express restaurants and luxury clothing manufacturer Aquascutum in the UK. Chinese investment increased exponentially.
Last years-when the Peugeot and Pizza Express offers were merger activity and Chinese acquisitions in Europe done- set a new record. Although Chinese investment in the US has also increased, surpassing the United States ends in China, Europe has proven to be more welcoming.
China has only 1 percent of European foreign direct investment in shares not enough to worry about. But this does not include local booms in Chinese private investment, such as real estate or Portuguese Latvian those countries under programs "golden visa". Europe is relatively cheap, open, and having things that Chinese companies are after: technology and household names.
The Pirelli agreement is about the latter. The bidder, China National Tire & Rubber Company, part of the parastatal giant ChemChina, sold 20 million tires a year, but no one has heard of its brands, Rubber Six and Eolo. No history of glorious racing or the famous Pirelli calendar. The Italian company seems overvalued-trades at 23 times earnings, compared with 16 and 11 for Kumho Michelin Korea. However, it has the fifth most valuable brand of tires in the world, and the other two European brands in the top five, Michelin and Continental, owned by much larger companies that make driving difficult goals for the acquisition.
TheChinaInvestors is the world's #1 funding and investments network for Chinese Investors and Global Investees.