ID :
201386
Mon, 08/15/2011 - 15:04
Auther :
Shortlink :
https://oananews.org//node/201386
The shortlink copeid
China's outbound M&As increase 14 pct in H1
HONG KONG, Aug. 15 (Yonhap) -- China's outbound merger and acquisition (M&A) activities increased 14 percent in the first six months this year, spurred by growing Chinese interest in acquiring foreign firms, a global consulting firm said Monday.
The number of M&A deals struck overseas by Chinese companies during the January-June period was 107, compared to 94 in the same period last year, PricewaterhouseCoopers (PwC) said.
PwC said the Chinese buyers show strong interest in a wide array of industries including machinery and equipment manufacturers as well as consumer-related companies, adding that M&A in the industrial and consumer segments nearly doubled in the first half of 2011 compared to the same period in 2010.
However, China saw fewer larger overseas deals in the first half of this year, with only three deals exceeding US$1 billion, compared to 12 a year earlier.
"Although there were fewer larger sized transactions in the first half of 2011, we expect that a number of big deals will be announced in the second half of the year. China is in the driver's seat of global M&A, and there is no sign that interest in outbound M&A is waning," David Brown at PwC's Great China Private Equity Group said in a press conference.
He said that as production of Chinese goods continued to move up the value chain and the country transitioned to a consumer-led economy, it was no surprise that buyers from China were keen to acquire more industrial know-how, technology and brands.
Outbound M&A activities are expected to remain robust, although global turbulence could affect some existing deals in the pipeline, PwC said.
An economic downturn, however, could present buying opportunities for cashed-up Chinese investors, it said.
Meanwhile, China's domestic strategic transactions grew 10 percent to a record level of 1,616 deals in the first half of the year, PwC said.
The firm said that overall, strategic buyer activity in China will continue to grow steadily, a trend that is in line with the Chinese government's 12th Five-Year Plan, which encourages consolidation to boost competitiveness of the domestic industries.
ygkim@yna.co.kr
The number of M&A deals struck overseas by Chinese companies during the January-June period was 107, compared to 94 in the same period last year, PricewaterhouseCoopers (PwC) said.
PwC said the Chinese buyers show strong interest in a wide array of industries including machinery and equipment manufacturers as well as consumer-related companies, adding that M&A in the industrial and consumer segments nearly doubled in the first half of 2011 compared to the same period in 2010.
However, China saw fewer larger overseas deals in the first half of this year, with only three deals exceeding US$1 billion, compared to 12 a year earlier.
"Although there were fewer larger sized transactions in the first half of 2011, we expect that a number of big deals will be announced in the second half of the year. China is in the driver's seat of global M&A, and there is no sign that interest in outbound M&A is waning," David Brown at PwC's Great China Private Equity Group said in a press conference.
He said that as production of Chinese goods continued to move up the value chain and the country transitioned to a consumer-led economy, it was no surprise that buyers from China were keen to acquire more industrial know-how, technology and brands.
Outbound M&A activities are expected to remain robust, although global turbulence could affect some existing deals in the pipeline, PwC said.
An economic downturn, however, could present buying opportunities for cashed-up Chinese investors, it said.
Meanwhile, China's domestic strategic transactions grew 10 percent to a record level of 1,616 deals in the first half of the year, PwC said.
The firm said that overall, strategic buyer activity in China will continue to grow steadily, a trend that is in line with the Chinese government's 12th Five-Year Plan, which encourages consolidation to boost competitiveness of the domestic industries.
ygkim@yna.co.kr
