Category: Money tips Release Date: 2007-05-21
Last week, Haier out of the United States pulled out of the bidding for Maytag appliance company; CNOOC Unocal Corporation also failed to win the hearts and minds, while 18.5 billion U.S. dollars of its Unocal bid is higher than Chevron's 17 billion U.S. dollars, but Unocal was Chevron is more cordial. For cross-border M & A transactions was still a novice in Chinese enterprises, this is really frustrating.
The United States Taihe Unocal's bid was seen as the touchstone of Chinese M & A skills, with the two U.S. companies trading seems too risky. The two Chinese companies were sold side has already signed a preliminary agreement with the other buyers after the half-way involved in bidding. Meanwhile, the U.S. domestic political pressures have also continued to block the CNOOC bid for Unocal. CNOOC is currently dilemma entirely attributed to political factors, the attitude of U.S. politicians have made a simple calculation of offer from an economic point of view has become no longer possible. Last week, the U.S. Senate has just approved an amendment to foreign acquisition of U.S. companies will set up new barriers. This is undoubtedly the CNOOC's bid for plans to add a new variable. CNOOC may be to wait until the U.S. Congress after the summer recess announced to raise their bid, because it will be buried during which Members had other affairs, opposition to CNOOC may be somewhat reduced. But this is a political problem, if purely the price problem, and that should have won the CNOOC.
CNOOC and Haier's acquisition ambitions of Chinese companies to attract the public's degree of maturity of close attention. These two acquisitions will not prevent the adverse situation of Chinese enterprises to expand overseas ambitions because it just sounded the clarion call offensive. The face of increasingly intense trade frictions, development, and access to resources for their own needs, acquisition of foreign enterprises, access to local resources and national treatment is a good choice. China is the emergence of some global companies such as Huawei and ZTE, in order to strengthen cooperation in research and development, customer service and support capabilities, and perhaps will consider overseas acquisitions, to complement the company's own rapid development. Another foreign acquisition of Chinese enterprises to stimulate factor is the appreciation of the renminbi. In appreciation of the RMB, foreign companies in the eyes of Chinese buyers to become more expensive, but with this more and more Chinese companies to identify attractive targets, coupled with a substantial appreciation of the yuan will not be, the purchase price as demand may also be correspondingly.
Many Chinese companies do not lack financial resources, they lack the experience and talent, they are also waiting for an opportunity. Lenovo's acquisition of IBM PC's really exciting, but more are still waiting to see the state enterprises. Chinese companies in acquiring foreign enterprises should return to profit when the nature rather than to squeeze into the top 500 or to obtain a so-called experience some loss-making enterprises to mergers and acquisitions as a "pay school fees," unless they really capitalized, or, or not to go to such schools.
Today's investment environment for Chinese enterprises is not very good. Any large Chinese enterprises in overseas mergers and acquisitions are likely to be labeled as a political label, for Chinese enterprises, this is very unfair, but you have to face. With China in Asia and the Pacific region, expands the strength to accept China is clearly a political and an economic choice, no country can not but any move to China cautious. But Chinese companies are not without opportunity to select the appropriate time as long as the advance and retreat, we can prepare and contribute to some more friendly, more good deals, so may be more vulnerable to foreign companies and accepted by the Government. Politicians are not blindly foreign corporate investment in China feel fear, and CNOOC triggered political controversy in Washington is different from Canada, Australia and other countries friendly attitude in stark contrast. CNOOC in Canada and Australia, the Gorgon project was progressing well. This shows that, even under the influence of political factors, China still has a lot of cheap and stable choice, but also more helpful to China's economic security.
