IDEAS home Printed from https://ideas.repec.org/a/prg/jnlcbr/v2017y2017i3id183p16-26.html
   My bibliography  Save this article

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

Author

Listed:
  • Karolina Łopacińska

Abstract

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.

Suggested Citation

  • Karolina Łopacińska, 2017. "Premises and Effects of Chinese M&As on the European Market in the Energy Sector," Central European Business Review, Prague University of Economics and Business, vol. 2017(3), pages 16-26.
    • Handle: RePEc:prg:jnlcbr:v:2017:y:2017:i:3:id:183:p:16-26
    DOI: 10.18267/j.cebr.183
    as

    Download full text from publisher

    File URL: http://cebr.vse.cz/doi/10.18267/j.cebr.183.html
    Download Restriction: free of charge
    File URL: http://cebr.vse.cz/doi/10.18267/j.cebr.183.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.cebr.183?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gonzalez, Pedro & Vasconcellos, Geraldo M. & Kish, Richard J., 1998. "Cross-border mergers and acquisitions: The undervaluation hypothesis," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(1), pages 25-45.
    2. Hopkins, H. Donald & Chaganti, Raj & Kotabe, Masaaki & Co-editors, 1999. "Cross-border mergers and acquisitions: Global and regional perspectives," Journal of International Management, Elsevier, vol. 5(3), pages 207-239.
    3. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Josef C. Brada & Ichiro Iwasaki, 2022. "The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature Survey," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 7(1), pages 1-70.
    2. Reddy, Kotapati Srinivasa, 2015. "Extant Reviews on Entry-mode/Internationalization, Mergers & Acquisitions, and Diversification: Understanding Theories and Establishing Interdisciplinary Research," MPRA Paper 63744, University Library of Munich, Germany, revised 2015.
    3. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    4. Yusnidah Ibrahim & Jimoh Olajide Raji, 2018. "Cross-border merger and acquisition activities in Asia: the role of macroeconomic factors," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 35(2), pages 307-329, May.
    5. Robert-Nicoud, Frédéric & Olarreaga, Marcelo & Carrère, Céline & Fugazza, Marco, 2016. "On the heterogeneous effect of trade on unemployment," CEPR Discussion Papers 11540, C.E.P.R. Discussion Papers.
    6. Basuil, Dynah A. & Datta, Deepak K., 2019. "Effects of Firm-specific and Country-specific Advantages on Relative Acquisition Size in Service Sector Cross-Border Acquisitions: An Empirical Examination," Journal of International Management, Elsevier, vol. 25(1), pages 66-80.
    7. Reddy, Kotapati Srinivasa, 2015. "Determinants of Cross-border Mergers and Acquisitions: A Comprehensive Review and Future Direction," MPRA Paper 63969, University Library of Munich, Germany, revised 2015.
    8. Reddy, Kotapati Srinivasa, 2015. "Revisiting and Reinforcing the Farmers Fox Theory: A Study (Test) of Three Cases in Cross-border Inbound Acquisitions," MPRA Paper 63561, University Library of Munich, Germany, revised 2015.
    9. Karolina Lopacinska, 2016. "The Merger of Geely Automobile and Volvo Car Corporation as an Example of the Expansion of Chinese Capital in the Automotive Sector," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 2(6), pages 162-173.
    10. Reddy, Kotapati Srinivasa, 2016. "Institutional Voids and Tax litigation in Emerging Economies: The verdict of Vodafone cross-border acquisition of Hutchison," MPRA Paper 74264, University Library of Munich, Germany, revised 2016.
    11. Collinson S. & Narula, R., 2014. "Asset recombination in international partnerships as a source of improved innovation capabilities in China," MERIT Working Papers 2014-061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Godwin Okafor & Jenifer Piesse & Allan Webster, 2017. "FDI Determinants in Least Recipient Regions: The Case of Sub†Saharan Africa and MENA," African Development Review, African Development Bank, vol. 29(4), pages 589-600, December.
    13. Jongmoo Jay Choi & Hoje Jo & Jimi Kim & Moo Sung Kim, 2018. "Business Groups and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 153(4), pages 931-954, December.
    14. Bürgel, Oliver & Fier, Andreas & Licht, Georg & Murray, Gordon & Nerlinger, Eric A., 1998. "The internationalisation of British and German start-up companies in high-technology industries," ZEW Discussion Papers 98-34, ZEW - Leibniz Centre for European Economic Research.
    15. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    16. Damoah, Kaku Attah & Giovannetti, Giorgia & Marvasi, Enrico, 2022. "Do country centrality and similarity to China matter in the allocation of belt and road projects?," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 660-674.
    17. Akinbola Amos Olufemi & Alaka Nureni Sanusi & Kowo Solomon Akpoviroro & Adeyemo Adesola Alex, 2020. "Family Business Operations and Sequel of Internationalisation in Nigeria," Economics and Business, Sciendo, vol. 34(1), pages 126-138, February.
    18. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    19. Subramanian Rangan & Metin Sengul, 2009. "Information technology and transnational integration: Theory and evidence on the evolution of the modern multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1496-1514, December.
    20. Lurdes Martins & Jorge Cerdeira & Aurora A.C. Teixeira, 2020. "Does corruption boost or harm firms’ performance in developing and emerging economies? A firm‐level study," The World Economy, Wiley Blackwell, vol. 43(8), pages 2119-2152, August.

    More about this item

    Keywords

    mergers and acquisitions; Chinese companies; European market; energy sector;
    All these keywords.

    JEL classification:

    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlcbr:v:2017:y:2017:i:3:id:183:p:16-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.