Related News
2010 marks record number of M&A deals
By Zhang Fengming |
January 17, 2011, Monday
|
Online Edition
Online Edition
MERGER and acquisition deals in China rose to a record level in 2010 on China's strong economic growth and China's push for industry consolidation, an industry report said today.
Outbound deals grew strongly in 2010 as Chinese companies were seeking resources and know-how overseas.
A record 4,251 announced transactions valued more than US$200 billion were filed in 2010, up 16 percent in number and up 27 percent in value over 2009, according to PricewaterhouseCoopers.
The trend is loud and clear for outbound M&A by China buyers, with overseas deals growing by more than 30 percent to a record 188 transactions and a combined value of about US$38 billion in 2010.
Nelson Lou, a PwC partner, said there was no denying that China had a growing interest in quality assets overseas and there were no signs that the strong outbound trend would wane in 2011 and beyond.
"China's appetite for overseas assets is insatiable with natural resources remaining a key industry target, as the country aims to secure resources it needs to fuel its engine of economic growth," Lou said.
Outbound deals are expected to continue to grow, driven by the demand for natural resources and the search for technologies to bring back to China market.
Geographically, China's interest in overseas mergers and acquisitions is widespread, but the United States is identified as a growing strategic target with 32 deals made in 2010, compared with 21 in 2009.
The European Union, Australia and Africa remain important locations of interest, as well as countries in Asia.
"The policies and direction set by China's new Five-Year Plan are likely to support continued M&A activity, as the government aims to continue to consolidate and restructure domestic industries, while optimizing foreign investment and accelerating outbound deals," said Andrew Li, a PwC partner.
Foreign strategic buyers are marching to the beat of a new drum, showing signs of returning to China with inbound deals reaching the level before the global financial crisis.
Besides, private equity is emerging as an important source of capital for private businesses in China, with nearly 580 transactions involving PE made last year, a year-on-year increase of 66 percent. More than two thirds of these were initiated by domestic PEs.
The European Union, Australia and Africa remain important locations of interest, as well as countries in Asia.
"The policies and direction set by China's new Five Year Plan are likely to support continued M&A activity, as the government aims to continue domestic consolidation and restructuring of industries, while ensuring foreign investment is optimized and going-abroad activity is accelerated," said Andrew Li, a PwC partner.
Foreign strategic buyers are marching to the beat of a new drum, now showing signs of returning to China with inbound deals growing to approach levels reached before the global financial crisis.
Besides, private equity is emerging as an important source of capital for private enterprises in China, with nearly 580 transactions involving PE activity with China targets announced in 2010, a year on year increase of 66 percent.
More than two thirds of these were initiated by domestic PEs, demonstrating the trend of localization of the PE industry within China.
Outbound deals grew strongly in 2010 as Chinese companies were seeking resources and know-how overseas.
A record 4,251 announced transactions valued more than US$200 billion were filed in 2010, up 16 percent in number and up 27 percent in value over 2009, according to PricewaterhouseCoopers.
The trend is loud and clear for outbound M&A by China buyers, with overseas deals growing by more than 30 percent to a record 188 transactions and a combined value of about US$38 billion in 2010.
Nelson Lou, a PwC partner, said there was no denying that China had a growing interest in quality assets overseas and there were no signs that the strong outbound trend would wane in 2011 and beyond.
"China's appetite for overseas assets is insatiable with natural resources remaining a key industry target, as the country aims to secure resources it needs to fuel its engine of economic growth," Lou said.
Outbound deals are expected to continue to grow, driven by the demand for natural resources and the search for technologies to bring back to China market.
Geographically, China's interest in overseas mergers and acquisitions is widespread, but the United States is identified as a growing strategic target with 32 deals made in 2010, compared with 21 in 2009.
The European Union, Australia and Africa remain important locations of interest, as well as countries in Asia.
"The policies and direction set by China's new Five-Year Plan are likely to support continued M&A activity, as the government aims to continue to consolidate and restructure domestic industries, while optimizing foreign investment and accelerating outbound deals," said Andrew Li, a PwC partner.
Foreign strategic buyers are marching to the beat of a new drum, showing signs of returning to China with inbound deals reaching the level before the global financial crisis.
Besides, private equity is emerging as an important source of capital for private businesses in China, with nearly 580 transactions involving PE made last year, a year-on-year increase of 66 percent. More than two thirds of these were initiated by domestic PEs.
The European Union, Australia and Africa remain important locations of interest, as well as countries in Asia.
"The policies and direction set by China's new Five Year Plan are likely to support continued M&A activity, as the government aims to continue domestic consolidation and restructuring of industries, while ensuring foreign investment is optimized and going-abroad activity is accelerated," said Andrew Li, a PwC partner.
Foreign strategic buyers are marching to the beat of a new drum, now showing signs of returning to China with inbound deals growing to approach levels reached before the global financial crisis.
Besides, private equity is emerging as an important source of capital for private enterprises in China, with nearly 580 transactions involving PE activity with China targets announced in 2010, a year on year increase of 66 percent.
More than two thirds of these were initiated by domestic PEs, demonstrating the trend of localization of the PE industry within China.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
