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March 2, 2012

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Strategic bidders

CHINESE bidders have become more sophisticated and strategic in overseas acquisitions by focusing on long-term growth and synergies rather than simply bringing assets back to China, industry watchers said yesterday.

The perception that Chinese bidders have unlimited capital and always offer a huge premium needs to be corrected, said a report from Mergermarket, an independent mergers and acquisitions intelligence service firm.

Some Chinese companies are looking at the current situation in Europe to raise their own global profiles through outbound M&As, according to the report.

The industry watchers have noticed a major strategic shift among the Chinese bidders from buying raw materials to acquiring intellectual property, especially in energy, mining and utilities.


 

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