Chinese companies look to invest in UK

However, some deals have been less successful than others. China's Bright Food, which acquired majority ownership of UK breakfast brand Weetabix in 2012, resold it in 2016.

Sanbao Group, which bought a majority stake in the British department store House of Fraser in 2014, with an ambitious plan to open 50 such stores in China, has only opened one. Last year, it announced plans to close 31 of its 59 UK shops, affecting 6,000 jobs, due to the poor British retail environment.

Peter Williamson, honorary professor of international management at Cambridge Judge Business School, said Chinese companies should do more to fully understand the UK market, regulations and business practices.

This is particularly so for those in the construction and infrastructure sectors, where the planning systems, building regulations and procurement processes are so complex that it is difficult even for local companies to understand them.

Peter Zysk, a director with the business advisory company Brunswick Group in Beijing, said one significant factor determining the likely success of Chinese outbound investment is public perception-which varies across sectors-and the scope of the investment.

A Brunswick report that surveyed 1,500 people from the US, UK and Germany found that 70 percent of respondents supported outbound transactions where a Chinese company only acquired a minority stake in a local one, but support level drops to 40 percent if the acquisition is for a majority stake and causes a management change.

The survey also found that a high percentage of respondents support Chinese acquisitions in sectors such as hotels and entertainment, but less than half support acquisitions in energy, banking and healthcare.

Zysk said: "Public perception of Chinese companies is hugely important. It can determine if a deal can happen, and can impact on deal prices. It also impacts on the regulatory approval process and the success of post-merger integration."