Making Chinese acquisitions in Europe more transparant.
The China-EU FDI Radar is an on-going research initiative aimed at providing greater transparency on Chinese investments in Europe. It currently covers acquisitions from 2010 up to the present. The data is made available to the public in an interactive map, indicating the level of Chinese state-influence for every acquisition. This indication is provided based on analysis of the ultimate beneficial ownership (UBO) by Datenna.
As part of this research effort, we used our in-house databases and FDI screening platform to analyse more than 1000 multi-layer holding structures and other financial constructions. Feel free to use the FDI Radar as your go-to resource for Chinese investments in Europe.
As we recently discussed in the Dutch newspaper ‘Financieel Dagblad’ (FD), the challenge for FDI screening policymakers is determining what level of state-control you will allow – and how to verify this. Having the best information available is essential in these assessments.
To determine the level of state influence, we used our proprietary algorithm which takes into account the entire shareholder structure, shares being pledged, level of state-control of any investors and other relevant factors. Since we developed this algorithm in-house, the indication of the state influence is our own opinion and should not be used for any screening decisions without additional deliberation with us. Please note that Netherlands and Germany seem overpopulated on the map currently, because we started our analysis there. We are constantly updating the radar with new acquisitions. If you are missing data or spot a mistake, please notify us.
A red pin means the ultimate controlling shareholder is part of the Chinese government, for instance the State Council of the People’s Republic of China. An orange pin also means the Chinese government has a substantial stake in the acquiring company, but might not necessarily be seen as controlling. Finally, a yellow pin indicates the Chinese government has no substantial influence in the acquiring company.
Datenna creates data platforms and research reports which deliver decision-relevant insights and data to our clients. We develop these services either in-house or in collaboration with partners and clients, building on our decade-long experience with the Chinese industry.
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