In the 1980s, China jumped on every possible and available M&A when it opened its markets to foreign companies in exchange for technological know-how, Chunlin Zhang, specialist at the World Bank, said in The Globe and Mail. The rest is history.

Africa is now on the same path.

Recently, South Africa's ProMet Engineers Africa and China's Dadi Engineering Development Group entered into an M&A to create ProMet Dadi Africa, a firm focused on mining and mineral process projects in Africa and Asia.

Simply out, the M&A reflects very obvious strategic benefits - access to Chinese technologies and capability for Africa, and access to resources for China. The proponents said they wanted the Chinese expertise brought in because of a lack of top-level, experienced management in South Africa as numerous executives have left for projects in Australia.

"We hope and we are confident this new company will give us a new, good opportunity to do business in the Africa market," Wang Dongping, a general manager of Dadi, said.

The M&A has already undertaken a $25 million gold project in Kyrgyzstan from South Africa.

China has invested $7 billion in South Africa by the end of 2010 alone. Chinese companies are to expand from mining, financial and manufacturing sectors, and towards telecom, transportation and renewable energy.

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