Driving for Success: A review of outbound automotive M&A activity from China
Since the beginning of 2009, China automotive industry's outbound deal flow has risen dramatically, while Chinese acquisitions of overseas Automotive assets have truly come of age following Geely’s US$1.8 billion acquisition of Volvo from the beleaguered US manufacturer Ford in March 2010.
Obstacles aside, it is clear that the number of Chinese outbound acquisitions of foreign assets will rise over 2010 and 2011, primarily in order to access new technological know-how, as well as to move into new markets. And with foreign regulators having proved to be in an accommodative mood of late, albeit only with regards to the sale of smaller, non-strategic brands, Chinese Automotive players are certainly looking to be gearing up for a record-breaking year of deal-making abroad.
Canvassed the opinions of 26 mainland China-based automotive corporations, this report also includes the analysis of the key opportunities and challenges that businesses in the sector face in the current trading environment.