What The Shuanghui-Smithfield Acquisition Means for Chinese Overseas Investment

#Energy Shuanghui International’s record-breaking $4.7 billion acquisition of Smithfield Foods in the U.S. is only the latest illustration of how Chinese overseas investment is moving beyond natural resources into the homes of everyday American and European consumers (Chinese Internet firm Tencent is quickly following suit). I started to write this article in a Manganese Bronze taxi in London on my way to Heathrow Airport. Manganese was on the verge of bankruptcy earlier this year until Hangzhou-based Geely invested £11 million ($17.5m) in February to save the struggling firm. Geely is best known for its 2010 acquisition of Volvo for the significantly larger sum of $1.5 billion. When the cab driver pulls into the international departure terminal at Heathrow, I’m reminded of last year’s £450m ($726m) investment by Chinese Investment Corporation (CIC) taking an approximately 10% share in the international airport. After passing British customs, I check my flight information on the departure screen only to see an advertisement for Lenovo’s latest “Yoga” laptop flashing on a nearby monitor. The innovative new product has a foldable screen that can be typed on as a laptop or easily converted into a tablet. Lenovo’s successful innovations are the result of incorporating the right global talent, investment in R&D, and a strategic acquisition program that began with its hallmark $1.25 billion acquisition of IBM’s personal computing division in 2005 and has continued worldwide from Germany to Japan.http://www.forbes.com/sites/joelbackaler/2013/11/05/what-the-shuanghui-smithfield-acquisition-means-for-chinese-overseas-investment/ http://bit.ly/15KdByZ