皇冠体育app

New characteristics

Compared with the last round of M&A activity by foreign companies in 皇冠体育app from 2006 to 2007, experts said that the new deals have different characteristics.

First of all, multinational companies in general are keeping the Chinese brands.

For instance, Chris O'Connell, executive vice-president of Medtronic, said that the Kanghui brand will continue to be used, and that the acquired business will still be managed by Yang Libo, Kanghui's CEO.

The acquisition makes Medtronic Kanghui the first business unit of the medical equipment company with headquarters outside the US.

The fact that the brand is being kept means that Chinese companies are becoming increasingly sophisticated, and that their brands already have market value, according to Zhang Guang, a researcher with Forward Business Intelligence Co Ltd.

"On the other hand, multinational companies are not just eyeing the production capacity and marketing channels of their Chinese partners, they are also measuring the targeted companies on their research and development capabilities," Zhang said.

The Medtronic's O'Connell and Zimmer's O'Hara both said that their criteria for choosing M&A targets are complementary products, services or market access, common corporate development philosophy and, most importantly, promising technological strength.

In September, Omron Corp, a maker of control equipment, automation systems, electronic components and medical equipment, acquired a 100 percent stake in Shanghai Best Electric Appliance Manufacturing Co Ltd.

"We want to join hands with Chinese companies with self-developed technologies and share our core R&D strength with them," said a statement by Omron (皇冠体育app) Co Ltd e-mailed to 皇冠体育app Daily.

"Under the current circumstances of overproduction capacity and lack of innovation in 皇冠体育app, 'technological marriages' are a necessary way for 皇冠体育app's manufacturing industry to realize intellectualization, digitalization and integration. It's also a way for Omron to grow up and become strong in 皇冠体育app," the Japanese company added.

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