Double that in 2022: China takes over six Swiss companies in 2023

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Last year, investors from the People’s Republic acquired a total of 119 companies in Europe. That was 20 fewer companies than a year ago and almost 200 fewer acquisitions than 2016, which was a record year in the long-term trend, EY announced Tuesday.

Investment amounts have also decreased significantly, according to EY estimates: there were still two billion dollars in 2023, less than half of what they were in 2022. However, EY clearly pointed out that the purchase prices of the majority of Chinese acquisitions and investments have fallen. Unknown in Europe.

Besides Switzerland, Germany and Austria were also at an unusually low level because the number of Chinese acquisitions and investments actually increased: EY counted 28 Chinese acquisitions in Germany; This means an increase of two compared to the previous year. In Austria, two companies were taken over by the Chinese; In 2022, it was just one company.

EY estimated that Chinese investors spent about $86 billion on acquisitions in Europe in 2016, at the height of China’s short-lived investment boom. Since the trend reversal in 2017, both the number of takeovers and the amounts invested have been falling steadily.

Experts see several reasons for this: Beijing has been slowing down capital outflows from China for several years, and there are also political tensions between China and the Western world, and lately, the Chinese economy has been weak compared to past record growth.

EY expert Sun Yi sees one reason for the development of political distrust that Chinese companies face in Europe: “Potential Chinese investors are checking very carefully whether the selection of particular takeover candidates will lead to resistance from governments and public controversy,” he said. Head of Western Europe China Business Services.

Over the next few years, the EY expert expects Chinese companies to invest more in setting up their own factories in Europe rather than making major acquisitions. For Chinese auto and battery manufacturers, Hungary, Spain, France and Northern European countries are particularly attractive investment locations due to their lower energy costs, higher subsidies and faster approval processes. “Germany is not preferred here.”

(SDA)

Source :Blick