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China's outbound M&A activities remain strong
By Wang Yanlin |
September 11, 2012, Tuesday
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Online Edition
Online Edition
CHINA'S solid long-term fundamentals will sustain a high level of outbound activities for the years to come, an industry report said today.
The country will remain the world's biggest buyer of energies including oil and gas, and will increase the purchase in the consumer and manufacturing sector to feed the demand in the country, legal advisory service provider Squire Sanders said in its China Outbound Mergers & Auquisitions report.
"There is little doubt that Chinese demand has helped to prop up the world economy during the historically volatile times," said William Downs, a partner of Squire Sanders. "Mainland Chinese companies have grown increasingly active in the global M&A marketplace since the onset of the financial crisis."
China's rise is demonstrated quite clearly in its outbound M&A activities over the course of the past several years, Downs said, as the total value of outbound M&A transactions increased nearly five-fold from 2005 to US$63.1 billion in 2011.
North America accounted for more than a third of the total outbound M&A deals from China since last year, up from 22 percent in the period between 2005 and 2010, the report said.
Western Europe is also an important market for Chinese investors for its sophisticated chemicals and materials sector.
Overwhelmingly, big-ticket acquisitions by Chinese companies are in the energy and resources sector, where large transactions tend to predominate. The sector has signed 30 percent of all outbound deals since 2011 with an astounding 70 percent of total value, according to the report.
Manufacturing and chemicals are the second most active outbound sector, accounting for over a fifth of total outbound deals, but just a tenth of total value.
China's outbound non-financial investment increased 52.8 percent from a year earlier to US$42.2 billion in the first seven months, according to data from the Ministry of Commerce.
The country will remain the world's biggest buyer of energies including oil and gas, and will increase the purchase in the consumer and manufacturing sector to feed the demand in the country, legal advisory service provider Squire Sanders said in its China Outbound Mergers & Auquisitions report.
"There is little doubt that Chinese demand has helped to prop up the world economy during the historically volatile times," said William Downs, a partner of Squire Sanders. "Mainland Chinese companies have grown increasingly active in the global M&A marketplace since the onset of the financial crisis."
China's rise is demonstrated quite clearly in its outbound M&A activities over the course of the past several years, Downs said, as the total value of outbound M&A transactions increased nearly five-fold from 2005 to US$63.1 billion in 2011.
North America accounted for more than a third of the total outbound M&A deals from China since last year, up from 22 percent in the period between 2005 and 2010, the report said.
Western Europe is also an important market for Chinese investors for its sophisticated chemicals and materials sector.
Overwhelmingly, big-ticket acquisitions by Chinese companies are in the energy and resources sector, where large transactions tend to predominate. The sector has signed 30 percent of all outbound deals since 2011 with an astounding 70 percent of total value, according to the report.
Manufacturing and chemicals are the second most active outbound sector, accounting for over a fifth of total outbound deals, but just a tenth of total value.
China's outbound non-financial investment increased 52.8 percent from a year earlier to US$42.2 billion in the first seven months, according to data from the Ministry of Commerce.
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