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

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  • 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
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
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    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

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