Tag archives: China

Looking back at M&A activity in 2018

Looking back at global M&A activity during 2018, a report on global M&A by Mergermarket shows that while global M&A deal value rose over the last year, the number of deals fell for the first time since 2010. The value of deals rose to $3.53 trillion US dollars, an increase of 11.5% since 2018, making last year the third-largest year on record for deal value since 2001. This rise in value was partly due to 36 deals with value of over $10 billion as well as the pressure felt by companies globally to consolidate, driving firms to compete for targets … Continue Reading

Chinese outbound private equity on the rise

Chinese buyout frenzy

Outbound private equity investments from China into North America and Europe have been growing rapidly.

unnamed

According to the investment bank Houlihan Lokey, in H1 of 2012, the outbound Chinese private equity transaction value was US$219M. Since then, Chinese private equity firms have drastically increased their offshore spending and recorded total transaction value of US$5,8B and US$7.4B in the first half of 2015 and 2016 respetively. While in 2012 and 2013, the rest of Asia played a more dominant role in outbound investments in terms transaction value, since 2014, China has been carrying the torch. In H1 … Continue Reading

M&A in China amid economic uncertainty

To the casual observer, the economic outlook in the Asia Pacific region, and China in particular, has been rosy for a long time, with international attention focused on fast-paced economic growth and emerging wealth in the region. However, the beginning of 2016 has proven to be difficult for Chinese government officials as they contend with tumultuous stock markets and newly released 2015 economic figures. As far as the outlook on M&A is concerned, Chinese companies’ overseas mergers and acquisitions were strong in 2015 and are expected to continue growing while spending on foreign M&A into China was down significantly in … Continue Reading

Navigating the regulatory waters in Chinese M&A

Entering the Chinese market by way of acquiring a business in China requires strategic planning. Not only do some industries have foreign ownership restrictions, there are several regulatory bodies relevant to inbound M&A in China. Depending on the industry, the size of the deal, and other factors, regulatory approval may be required from half a dozen different bodies. Provincial and municipal governments may become involved, and party officials can also have an impact.

A recent report by BCG outlines some of the main regulatory bodies in China and the timeframe that should be allotted so as to obtain approval. The … Continue Reading

LexBlog