International Acquisition Strategy Of Chinese Concrete Pump Industry

This monographic study focuses on the case of acquisition of Putzmeister AG bySANY Heavy Industry Co., Ltd. It consists of a vertical study and a horizontal study. Thevertical study outlines the concrete machinery industry’s development in the past fiftyyears, and offers a description of the present situation and a forecast for the future. It aimsat finding factors contributing to SANY’s successful acquisition of Putzmeister, andpredicting the prospects to the new SANY/Putzmeister development in the future. Thehorizontal makes a comparative study of the features of SANY (China) and PutzmeisterAG (Germany), their product types and the market situation, analyzes their sales data,overseas trip visit, product management, market operation…etc. so as to draw lessons fromfactors, and study the international acquisition strategy choice of the Chinese enterprises,as well as business mode and operation process.This monographic study offers analysis of the data from SANY and PutzmeisterAG, summarizes factors that should be considered before acquisition, outlines major stepsof acquisition, conducts benefit and cost analyses, summarizes lessons that can be drawnfrom the case, and suggests solutions to the existing problems and implementation plan,with cross-cultural cooperation and borderless management as important components.Analysis shows that in order to achieve successful acquisition, such factorsshould be taken into consideration: Simple ownership and shareholder structure, prefer tothe family company; Middle size enterprise scale; operating in the same industry as wellas simulator products portfolio; avoiding such sensitive industry as defense, aerospace,information, military.It is the author’s hope that this paper can, by studying this successful acquisition,can sum up the success factors of Chinese enterprises overseas acquisition, find feasible ofuniversal significance, implementation plan, find an easier way to analyze and summarizea common frame to the China construction machinery industry international acquisitionstrategy, to provide reference for the future oversea acquisition business.