Chinese State-owned enterprises in the international market for corporate control. Evidences and rationalities of acquisition in western countries

In this chapter, we propose an exploratory analysis of the Chinese acquisition of foreigner companies by state-owned enterprises during the last ten years (2008-2017). Cross-border merger and acquisition (M&A) carried out by Chinese companies have shown strong growth, and have gradually emerged as the dominant vehicle for Chinese outward investment. Our aim is to understand the main dynamics underling the phenomenon of Chinese state-owned enterprises acquisitions in advanced countries. For this purpose, in our analysis we target only mergers and acquisition of companies in western countries in the last ten years. Our data collection returned a sample of around 150 cases. We use both quantitative and qualitative data to get insights about the main patterns of acquisition, industry choice, and country location. Moreover, we try to fill the gap related to the understanding of the rationalities for such strategic-asset-seeking M&A. Our conclusion contributes to the literature on international M&A and supports the business-oriented strategy of state-owned enterprises in dealing with cross border acquisitions.