CHINESE M&As INTO EUROPE: A PREFERENTIAL PATHWAY TO TECHNOLOGY TRANSFER?

Abstract

In recent years, Chinese companies have consistently been engaged in acquisitions both inside and outside China. The general understanding of Chinese cross-border investments is still limited, mainly due to the fact that they constitute a recent phenomenon which has emerged over the past two decades. There is therefore a considerable gap in the existing research which, over the past century, has in turn mainly focused on developed countries‘ acquisitions. Throughout this thesis I would like to contribute to the existing literature on the subject, fill the gap in research and thereby help unravel the topic of Chinese acquisitions. Expanding the present literature is the only way to enhance the transparency of discussed transactions, thus leading observers to a better understanding of the subject. I will focus on the following research question: are Chinese M&As transactions in Europe a means through which Chinese companies seek to acquire foreign countries’ know-how? The first chapter is mainly going to provide an outline of the phenomenon of Chinese M&As activities into Europe. Throughout the second chapter I will be describing the most recent legislative tools and policies enacted by the European Union to better regulate the flow of acquisitions into the bloc. With the third and final chapter I aim to conduct empirical research on a sample of acquisitions and assess to what extent the acquirers decide to engage in such transactions with the objective of absorbing European know-how.