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Chinese investors' M&A tastes are maturing: report

CHINESE bidders have become more sophisticated and strategic when acquiring businesses overseas, by focusing on long-term growth and synergies rather than simply bringing hard assets back to China, industry watchers said today.

The perception that Chinese bidders have unlimited capital and always offer a huge premium needs to be corrected, said a report from Mergermarket, an independent merger and acquisitions intelligence service firm.

Some Chinese companies are looking at the current situation in Europe as an opportunity to raise their own global profiles through outbound M&A in a down market, according to the report.

The industry watchers have noticed a major strategic shift among Chinese bidders, a switch from buying raw materials to acquiring intellectual property, especially in the energy, mining and utilities sectors.

Another notable sector is the financial services industry, where M&A activity is normally low, in which the advanced Chinese acquirers look to buy brand names, said the report.

Cultural differences and regulatory issues continue to be the major concerns for Chinese bidders. However the watchers stayed positive for the business perspective, as regulatory processes have been improved on the acquirer side.



 

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