CKGSB website

CKGSB Knowledge

Teng Bingsheng on the global M&A strategies of Chinese Companies

by Michele Scrimenti

September 14, 2012

Here’s a question. What do the following mergers and acquisitions have in common: Lenovo and IBM’s PC division, TCL and Thomson Electronics’ TV arm, and BenQ and Siemen’s cellphone business?

According to Teng Bingsheng, Associate Professor of Strategic Management and Associate Dean responsible for the CKGSB MBA program, there is one common thread that runs through most of the global acquisitions done by Chinese companies: in most cases — and as these examples show — they go after giants in trouble. “They believe in the flawed notion that size is power,” he says.

In this interview, Prof Teng elaborates on the challenges associated with such M&As.

You may also like

An Uncommon Theory for Common Prosperity

The author of In Line Behind a Billion People: How Scarcity Will Define China’s Ascent reflects on the scenarios put forward.

by Damien Ma | Sep. 7 2022

Decisions, Decisions, Decisions

Oat drink company OATLY successfully navigated its entry into the China market via three key choices, including who it should partner with.

by Teng Binsheng and Wang Xiaolong | Jul. 29 2022

Solving the Fertility Conundrum

China’s ultra-low fertility rates will severely hamper the country’s growth in the coming years. What must be done to.

by Ouyang Hui | Apr. 18 2022

Burning out

The hardworking approach of Chinese people is the driving force behind the country’s unmatched growth, but attitudes are starting to shift.

by Leslie Wang | Apr. 18 2022