Value of domestic and inbound M&A deals drops to 5-year low
By Feng Jianmin |
January 31, 2013, Thursday
|
Print Edition
Print Edition
THE overall value of China's domestic and inbound mergers and acquisitions fell to a five-year low in 2012 due to a weak global economy, while outbound deals hit a record high on growing appetite for overseas investments, an industry survey showed yesterday.
There were 2,953 publicized domestic and foreign inbound deals last year in China, excluding financial and private equity transactions. The number includes deals on both the Chinese mainland and Hong Kong. In 2011, 3,744 such deals were completed, PricewaterhouseCoopers said in a report yesterday.
The value dropped 28 percent to US$97.1 billion from 2011, the report said. However, China's outbound deals jumped 54 percent to a record US$65.2 billion.
"The slow pace of recovery in Western economies along with a slowing Chinese economy put many domestic and inbound deals on the back burner," said Roger Li, PwC China transaction services partner.
"On the contrary, there is great pent-up demand as witnessed by the record growth in the value of outbound deals, spurred on by companies in China taking advantage of favorable buying conditions overseas."
He said a growing number of private companies on the mainland are taking larger-sized overseas projects. While state-owned enterprises focus on buying foreign resources and energy firms, the private sector is looking mainly at the consumer and technology sectors.
Gabriel Wong, leader of PwC China corporate finance, said outbound acquisitions will continue to rise this year as the company has seen many deals in the pipeline.
Europe remained the most popular destination for domestic companies due to relatively low asset valuations and mature technologies, the PwC report said.
There were 2,953 publicized domestic and foreign inbound deals last year in China, excluding financial and private equity transactions. The number includes deals on both the Chinese mainland and Hong Kong. In 2011, 3,744 such deals were completed, PricewaterhouseCoopers said in a report yesterday.
The value dropped 28 percent to US$97.1 billion from 2011, the report said. However, China's outbound deals jumped 54 percent to a record US$65.2 billion.
"The slow pace of recovery in Western economies along with a slowing Chinese economy put many domestic and inbound deals on the back burner," said Roger Li, PwC China transaction services partner.
"On the contrary, there is great pent-up demand as witnessed by the record growth in the value of outbound deals, spurred on by companies in China taking advantage of favorable buying conditions overseas."
He said a growing number of private companies on the mainland are taking larger-sized overseas projects. While state-owned enterprises focus on buying foreign resources and energy firms, the private sector is looking mainly at the consumer and technology sectors.
Gabriel Wong, leader of PwC China corporate finance, said outbound acquisitions will continue to rise this year as the company has seen many deals in the pipeline.
Europe remained the most popular destination for domestic companies due to relatively low asset valuations and mature technologies, the PwC report said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
