The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Foreign buyers beware

Emerging markets companies buying western assets must heed the lessons of Cemex and Tata Motors.

The hunt for western assets continues apace for emerging market companies. Last month, China Petrochemical Corporation (Sinopec) announced its intention to buy Swiss rival Addax for $7.2 billion.

If the Sinopec deal is included, the total value of announced emerging markets’ acquisitions of western targets up to the end of June is $52.5 billion, according to Dealogic. Although the final value for this year is unlikely to match the $153.7 billion of 2008, it is on course to match, if not beat, the $104.8 billion of 2006.

These numbers suggest that emerging markets companies’ aggression has not been cooled by the financial crisis. State-owned entities are leading the way but bankers say that private-sector corporates will follow once markets stabilize, especially out of Asia where balance sheets are less strained. They are likely to focus their attention especially on Europe. Much of the activity is in natural resources, although it has moved on to encompass the finance, pharmaceuticals and technology industries.

Potential buyers should, however, heed the lessons of Cemex and Tata Motors. Mexican cement firm Cemex bought companies in the US, the UK and Australia. It was perceived as a great role model for other emerging-market acquirers, not least for its ability to integrate culturally diverse assets.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?