Central European Business Review 2017, 6(3):16-26 | DOI: 10.18267/j.cebr.183

Premises and Effects of Chinese M&As on the European Market in the Energy Sector

Karolina Łopacińska
Karolina Łopacińska, Assistant Professor, Department of International Economic Relations, Wrocław University of Economics, Komandorska 118/120, 53-345 Wrocław, Poland, lopacinska.karolina@gmail.com

Mergers and acquisitions (M&As) play an increasingly important role in the expansion of Chinese companies in the European market. The article aims to analyze the largest, in terms of value, M&As conducted by Chinese companies between 2005 and 2015 in the energy sector, in order to present the main premises and consequences of such agreements. For this purpose, the assessment was made based on case studies conducted by the Author, as well as the opinions of experts specializing in the business models of Chinese enterprises, derived from qualitative interviews. Specialized literature on the discussed forms of international expansion of Chinese enterprises was also used. Based on the case study method, analysis of the agreements shows that decisions on conducting M&As are strongly influenced by the adopted strategic directions of the companies’ development, their desire to develop a competitive position on the market and improve their financial condition. The effects, in turn, were addressed, taking into account the dimensions of the strategic and tactical importance for companies.

Keywords: mergers and acquisitions; Chinese companies; European market; energy sector
JEL classification: F53, L1, L2

Received: July 24, 2017; Revised: August 20, 2017; Published: September 30, 2017  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Łopacińska, K. (2017). Premises and Effects of Chinese M&As on the European Market in the Energy Sector. Central European Business Review, 6(3), 16-26. doi: 10.18267/j.cebr.183
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Alon, I., Fetscherin, M., & Sardy, M. (2008). Geely Motors: A Chinese Automaker Enters International Markets. International Journal of Chinese Culture and Management, 1(4), 489-498 Go to original source...
    2. Andrews-Speed, P., Herberg, M. E., Zhidong, L., & Shobert, B. (2014). China's Energy Crossroads: Forging a New Energy and Environmental Balance. NBR Reports. Retrieved September 21, 2016 from http://www.nbr.org.
    3. Brahic, C. (2007). China's emissions may surpass the US in 2007. New Scientist, Daily News. Retrieved September 21, 2016 from http://www.newscientist.com.
    4. Chemia Przemysłowa (2010). Chińska eksplozja energetyczna, Chemia Przemysłowa Journal. Retrieved November 2, 2015 from http://www.kierunekspozywczy.pl/artykul,2759,chinska-eksplozja-energetyczna.html.
    5. Dunning, J. (1980). Towards an Eclectic Theory of International Production: Some Empirical Tests. Journal of International Business Studies, 11(1), 9-31. Go to original source...
    6. Gallo, F. T. (2011). Business leadership in China. How to blend best western practices with Chinese wisdom. New York: John Wiley & Sons.
    7. Gonzalez, P., Vasconcellos, G. M., & Kish, R. J. (1998). Cross-border mergers and acquisitions: the undervaluation hypothesis. The Quarterly Review of Economics and Finance, 38(1), 25-45. Go to original source...
    8. Góralczyk, B. (2015). Chińskie wyzwania energetyczne. Obserwator Finansowy. Retrieved March 3, 2015 from http://www.obserwatorfinansowy.pl/forma/rotator/chinskie-wyzwania-energetyczne/.
    9. Hanemann, T., & Huotari, M. (2015). Chinese FDI in Europe and Germany. Preparing for a New Era of Chinese Capital. Report prepared by Mercator Institute for China Studies and Rhodium Group. Retrieved September 21, 2016 from http://www.iberchina.org/files/ChineseFDI_Europe_Mercator.pdf.
    10. Hansakul, S., & Levinger, H. (2014). China-EU relations: Gearing up for growth. Deutsche Bank Research Report Current Issues Emerging markets. Retrieved September 21, 2015 from https://www.deutsche-bank.de/fk/de/docs/China-EU-relations.pdf.
    11. Hopkins, D. (1999). Cross-border mergers and acquisitions: Global and regional perspectives. Journal of International Management, 5(3), 207-239. Go to original source...
    12. ING Report (2014). ING Corporate Finance Asia, Sino-Europe Outbound M&A Review 1H 2014, Semi Annual Newsletter. Retrieved September 21, 2016 from http://www.ingcb.com.
    13. ING Report (2015). ING Corporate Finance Asia, Sino-Europe Outbound M&A Review 1H 2015, Semi Annual Newsletter. Retrieved September 21, 2016 from http://www.ingwb.com.
    14. Jha, A. (2008). China 'leads the world' in renewable energy. The Guardian. Retrieved November 2, 2015 from https://www.theguardian.com/environment/2008/aug/01/renewableenergy.climatechange.
    15. Millner, C. (2012). Eyes on the Price: Beijing Sets its Sights on Central Europe. Spiegel Online International. Retrieved November 2, 2015 from http://www.spiegel.de/international/europe/with-10-billion-dollar-credit-line-china-deepens-presence-in-centraleurope-a-833811.html.
    16. Ni, V. (2012). China Sets New Greenhouse Gas Emission Reduction Goals. China Briefing. Retrieved November 2, 2015 from http://www.china-briefing.com/news/2012/01/18/china-setsnew-greenhouse-gas-emission-reduction-goals.html.
    17. Porter, M. E. (1985). The Competitive Advantage of Nations. New York: The Free Press.
    18. Porter, M. E. (2008). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.
    19. Porter, M. E. (2010). Przewaga konkurencyjna. Osi±ganie i utrzymywanie lepszych wyników [Competitive Advantage: Creating and Sustaining Superior Performance]. Gliwice: Helion.
    20. Reuters (2006). China fears disasters, grain cut from global warming. Retrieved November 2, 2015 from http://www.reuters.com/article/us-china-climate/china-fears-disasters-grain-cut-from-global-warming-idUSPEK7890420061227.
    21. Rymarczyk, J. (2006). Międzynarodowe Stosunki Gospodarcze. Warszawa: Polskie Wydawnictwo Ekonomiczne.
    22. Sherman, A. J., & Hart, M. A. (2010). Mergers and Acquisitions from A to Z. New York: American Management Association.
    23. Sudarsanam, P. S. (2003). Creating value from mergers and acquisitions: The challenges: An integrated and international perspective. London: Pearson Education.
    24. Sudarsanam, P. S. (1995). The essence of mergers and acquisitions. London: Prentice Hall.
    25. Weston, F. (1992). Financial theory and corporate policy. New York: McGraw Hill.
    26. Weston, F. (1990). Mergers, Restructuring and Corporate Control. London: Prentice Hall.
    27. World Nuclear Association (2016). Nuclear Power in China. Retreieved September 21, 2015 from http://www.world-nuclear.org/information-library/country-profiles/countries-a-f/china-nuclear-power.aspx.
    28. Xinhuanet News (2007). China issues national plan to address climate change. Retrieved November 2, 2015 from http://www.fmprc.gov.cn/ce/cedk/eng/zdgx/t326940.htm.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content