Outbound M&As surge in both volume and value
Updated: 2016-11-07 08:22
By CAI XIAO(China Daily)
|
|||||||||
A cartoon of M&A[Photo/IC] |
The volume and value of outbound mergers and acquisitions by Chinese mainland companies hit a record high in the first three quarters of 2016, a report by PricewaterhouseCoopers showed.
Deal volume, the report said, reached a record of 671, nearly double that for the whole of 2015, while deal values totaled $164.3 billion, increasing 198.2 percent year-on-year.
ChemChina's acquisition of Swiss seed and chemical group Syngenta for $43 billion was the largest one.
Carol Wu, PwC China transaction services partner, said given the existing global economic scenario and domestic competitive landscape, more and more Chinese companies are opting for overseas M&As for both diversification and technology upgrading.
"Smooth financing channels in capital markets and fast-growing financial investors are the main reasons for the significant increase in the first three quarters," said Wu.
Listed companies accounted for more than 56 percent of the outbound M&A transactions, by deal amount, in the first three quarters of 2016.
By transaction volume, privately-owned enterprises were still the most active players, clinching 449 M&A deals in the first three quarters. The figure was nearly five times higher than the number for State-owned enterprises.
For the first time, privately-owned enterprises surpassed State-owned enterprises in transaction value, accounting for half of the total over the first three quarters of 2016.
"Some privately-owned enterprises have completed several deals, and in the process accumulated worthwhile experiences, which will be of long-term benefit to them," said Wu.
Financial investors became more active with 127 M&A deals made in the first three quarters, doubling the number made over the whole of 2015.
Mature markets such as Europe and North America continued to be the main destinations for Chinese buyers of sophisticated technology, advanced management experience and well-known brands. Asia was also popular among investors because of the Belt and Road Initiative.
PwC forecast that Chinese mainland outbound M&A will keep growing based on the 2016 results benefiting from encouraging policies and the renminbi's internationalization.
The changing international tax environment will raise new challenges for risk control and compliance procedures, the report said.
Related Stories
Outbound M&A activity on the rise, survey says 2013-01-08 07:56
China pledges better M&A environment 2014-03-25 07:16
China is becoming the center for M&A business 2015-07-21 07:43
M&A deals surge to $352b in first six months, says PwC report 2015-08-21 08:05
Today's Top News
Latvia links with Belt and Road Initiative
High Court: Parliament must vote before Brexit
Li promotes SCO bank, free trade
Court to instruct how to trigger formal EU exit
Premier emphasizes fight against terror
Italian authorities vow to rebuild earthquake-hit areas
Li arrives in Kyrgyzstan for visit, SCO meeting
Xi affirms one-China policy
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Hollywood snaps up rock star's dog film |
Chinese people welcome dispossessed |
The can-do generation to the fore |
Riding the wave |
Leisure giants buoy cruise market |
She followed her heart |