Foreign direct investment (FDI) by China is increasing globally, but we know relatively little about why Chinese investors acquire assets in New Zealand. In a recent article, two examples of Chinese multinational enterprises (MNEs) acquiring iconic New Zealand companies show some commonalities in investor motivation, entry strategy and choice of target. The research suggests that traditional international business theories of Western MNEs’ internationalisation need modifying for enterprises from emerging economies.

PGG Wrightson is New Zealand’s largest rural services business provider and also has subsidiaries in Australia and South America (mostly Uruguay). It has become partially acquired by a somewhat newly established Chinese agricultural firm, Agria, which made its first international acquisition in 2009 when it acquired a 13% holding in PGG Wrightson. A further acquisition of stock in 2011 took Agria’s stake in PGG Wrightson past 50%. Shortly after this acquisition, PGG Wrightson accounted for 99% of Agria’s revenue.

Please click here to read the full ‘Chinese FDI in New Zealand: What Are Chinese Investors Looking For?’ synopsis published at Auckland University’s New Zealand Asia Institute, based on the original article written by Griffith Asia Institute member, Gloria Ge, and colleagues, Christina Stringer and Daniel Ding.