How China's companies can succeed overseas
June 29, 2012 | BY
clpstaff &clp articlesChinese outbound investment reached $128 billion last year and is set to increase to $800 billion by 2016. China Law & Practice has produced the definitive guide to the risks these Chinese companies face
State-owned enterprises (SOEs) like Bright Food, who bought British breakfast cereal giant Weetabix in May (see Interview: How Bright Food bought Weetabix) are leading this trend. Bright Food announced another groundbreaking deal this week – a 70% stake in Bordeaux wine exporter Diva.
SOEs are not the only players though – last month Dalian based Wanda Group bought AMC Entertainment Holdings for $2.6 billion. The deal sees Wanda expand its cinema base into the US, creating the world's biggest cinema owner.
But what about the risks involved? Chinese companies face a completely different landscape when going abroad. Many minority investments will be made through a joint venture company, creating concerns over the protection of minority shareholder rights.
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