Record year in sight for overseas mergers and acquisitions

0 Comment(s)Print E-mail China Daily, March 5, 2016
Adjust font size:

Chinese companies large and small, private and State-owned, are embarking on a spree of overseas mergers and acquisitions, spurred by government policies that encourage overseas expansion.

All the signs are that M&A activity will break all records this year, even at a time of economic slowdown.

But what are the targets? Where are they? And, more importantly, how will Chinese companies overcome the inevitable challenges?

Ministry of Commerce data suggest smaller enterprises rather than larger, State-owned and private entities are behind the latest surge. In January, China's non-financial outbound investment rose to 78.7 billion yuan ($12 billion) almost three times the rate in December and a rise of 18.2 percent from a year earlier. Of the country's total overseas direct investment in January, 92.5 percent came from smaller enterprises, up 175 percent from the same period last year.

Figures from information provider Morning Whistle Group show that private companies completed 76.78 percent of the M&A deals last year, while State-owned enterprises accounted for 20.29 percent. The target areas were technology, media and telecommunications, agriculture and food, and energy and mineral resources. That is likely to remain the same this year, according to analysts.

Commerce Ministry spokesman Shen Danyang attributed the trend to government policies aimed at promoting collaboration between Chinese entities and international companies. Chinese investment in foreign manufacturing rose 87.8 percent year-on-year to 10.6 billion yuan in January, with much of the money flowing into the telecommunications, electronics, pharmaceuticals and motor vehicle sectors, Shen said.

And the data supporting the boom keep coming. Chinese investment in the United States rose to more than 10 billion yuan in January, nearly four times the amount in the same month last year, according to ministry data.

Follow China.org.cn on Twitter and Facebook to join the conversation.
1   2   3   4   Next  


Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter