by Xinhua Writer Chen Shilei
BEIJING, Aug. 8 (Xinhua) -- Chinese home appliance maker Midea Group's bid for German robot maker Kuka AG has clearly demonstrated the spirit of win-win cooperation while dispelling "suspicions" surrounding Chinese investments.
Despite initial objections from some German policymakers and industry bigwigs, Midea finally secured 94.55 percent of Kuka's share, according to an announcement made by Midea on Monday. The deal, pending regulatory approval, demonstrated the Chinese company's sincerity and firm belief in win-win results.
The merger is a win-win because it is expected to help Midea develop automation to improve production efficiency and quality while assisting Kuka in gaining access to the vast Chinese market.
It serves as a vivid example of the alignment between China's "Made in China 2025" blueprint and Germany's "Industry 4.0."
However, Midea's bid has initially been met with opposition and suspicion.
Although Berlin has reiterated that it will not intervene in the commercial deal, local media reported that some European Union (EU) and German officials opposed it out of concern that Midea could "steal" German technology and deal a blow to Germany's industrial digitization drive.
Minority shareholders in Kuka also reportedly voiced concerns that Midea's "control" over Kuka could let the latter lose its independence in corporate management.
The concerns over intellectual property are not justified because intellectual property is not something one can just take and export, but rather something that essentially requires the assistance and cooperation of the people involved.
Midea has demonstrated great sincerity and made the utmost efforts in acquiring Kuka. It has pledged that Kuka will operate independently and keep all the jobs for its employees to 2023, which is in the best interest of the German company.
In many other similar cases, Chinese investors have allowed great independence for the management of acquired German companies.
Take the Putzmeister-Sany case, for instance. In 2012, Sany Heavy Industry, China's largest construction equipment group, acquired Putzmeister, a German concrete pump maker, at a price of about 4 billion U.S. dollars. Workers at Putzmeister protested outside the factory over concerns that they would lose their jobs.
But four years later, Putzmeister's headcount has been stable, and the stability is expected to continue until 2020. Meanwhile, sales of the company increased by nearly one third, and the established image of Putzmeister and its good relations it has with business partners have remained unchanged.
In contrast to those who work for German companies purchased by investors from other countries, many workers at Putzmeister are now grateful to have been able to keep their jobs.
Therefore, the internationalization of Chinese enterprises along with the growing Chinese economy should not be politicized, and there is no need to regard Chinese investment with suspicion.
An increasing number of Chinese companies have been successful in overseas mergers and acquisitions, because they focus not only on short-term financial benefits, but also on long-term strategic goals and gaining a strong foothold in the international market.
As long as policymakers and industry bigwigs are supportive and open-minded, overseas mergers and acquisitions, conducted legally and in line with market principles and international practices, can yield win-win outcomes and contribute to social and economic development. Enditem
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