Making M&A Fly in China

The first wave of foreign direct investment in China, in the 1980s, mostly took the form of joint ventures. A second wave followed in the 1990s in the form of greenfield wholly foreign-owned enterprises (WFOEs). Now a third wave of foreign direct investment—cross-border mergers and acquisitions—is gaining strength. Consider the forces driving this third wave. […]

by

Mike Peng

by

Mike Peng

From the Magazine (March 2006)

Summary.

Reprint: F0603G

Cross-border mergers and acquisitions are gaining momentum in China. To be successful, acquiring companies must understand certain M&A idiosyncrasies that are specific to China.

The first wave of foreign direct investment in China, in the 1980s, mostly took the form of joint ventures. A second wave followed in the 1990s in the form of greenfield wholly foreign-owned enterprises (WFOEs). Now a third wave of foreign direct investment—cross-border mergers and acquisitions—is gaining strength.

A version of this article appeared in the March 2006 issue of Harvard Business Review.

MP

Mike W. Peng is the Jindal Chair of Global Strategy at the Jindal School of Management, University of Texas at Dallas

Making M&A Fly in China

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