China: A global new energy scavenger hunt

Newly reported that large automaker Dongfeng motor (HKEx: 489) a struggling U.S. hybrid automaker is bidding to buy are casting a spotlight on China in its new role as scavengers for global new energy companies are struggling to stay in business. A number of factors driving this budding trend, led by the fact that many of these Chinese suitors enough cash fairly and in a good position to provide much-needed funds for Western companies for new energy-starved.

What more love Chinese companies generally a bargain, if they global resources shop. Then there is also the factor of technology, how many hope this Chinese buyers of technology get some of their purchases for the operation to bring them home. Finally, there is also the factor of Beijing, because many such purchases make those buyers to its commitment to the development of new energy technologies to show top priority for the Central Government. The only problem with this is of course, that most of these factors have little or no backing in the leadership of an economically viable business model, which means that many of these purchases ultimately for their buyer headaches and wrecking might lead.

But now that I said that, we take a look at the latest headlines that say that the Dongfeng is one of several potential bidders ForFisker automotive, a US manufacturer of high-end hybrid cars. The Dongfeng bid would see approximately 350 million $ to pay to sell their luxury hybrid cars for more than $100,000 for 85 per cent of Fisker. Fisker had stopped production of his karma model car last year after a who said bankruptcy, but recently its key suppliers, it plans to restart production soon.

According to the reports, Fisker will face their own cash crunch around the middle of this year, if it is not found until a new major investor. When Dongfeng manages to buy the stake, it could be some of Fisker's production finally after China-a common strategy by Chinese buyers who often move, that she can fix troubled Western companies think by simply moving their production facilities in China.

This latest deal follows a series of similar Western companies, the new energy in the past year fighting the recent purchase of China. At least these offers China's Wanxiang saw group before recent approval for the appointment of the majority of the assets of the bankrupt high-tech battery maker of A123 systems to win. Which are faced before some uncertainty due to national security concerns, but the U.S. Government ultimately approved the transaction last month.

Last year saw a number of Chinese companies make global acquisitions in the solar panel, which has struggled for the past 2 years due to a massive flood of supply. Chinese companies of reached Hanergy holding group a deal last fall to ailing Silicon Valley companies MiaSole for bargain buy. Hanergy made also an acquisition in Germany, to buy a unit of QCells, for about $500 million. Other deals saw LDK Solar (NYSE: LDK) 33 percent of Sunways AG last year and the TFG radiant Groupbuy Germany a 41 percent in the U.S. company ascent solar technologies in the year 2011 to buy.

This latest Dongfeng's bid for Fisker shows the Chinese appetite for Western companies, the new energy is still going strong and Acceleration even in 2013 for the reasons which I described above. Such deals are important in some respects, because they will help to consolidate in crowded sectors such as solar panels, are suffering from overcapacity.

But as I said before, I think, that many of these purchases for difficulties and failures to determine the resources and the experience are, because Chinese companies are missing to make the problem, what they are buying. Search from a broader perspective more these purchases in the next two years by bargain hunting Chinese companies, followed by the first signs of trouble for many of those acquisitions off end of this year or even earlier.

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