This paper examines the extent that takeovers create value for large, unlisted target firms in China and how distinct institutional features and CEO characteristics in China affect the performance of target firms in takeovers. Using takeovers between Chinese listed bidders and private (non-listed) targets over 2000 to 2009, we find that productivity of the targets improves via boosting outputs. Further evidence shows that the ownership structure (state versus non-state), type of state ownership (central versus local), the product market relationship between the bidder and the target (horizontal versus diversifying), and CEO foreign experience affect the level of productivity improvement from takeovers. Our study sheds light on the M&A literature that mainly focus on the performance of bidders.