View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
January 17, 2011

M&A deals hit record high in China

The number and value of M&As in China hit a record high in 2010, according to PwC China.

The value of deals increased by 16% to $200 billion over 2009 figures and the number of transactions rose 27% to 4,251.

Outbound M&A activity is particularly strong as Chinese companies look at targets in the US, Europe, Australia, Africa and Asia. The number of outbound deals involving Chinese companies grew by more than 30% to 188 with a combined value of about $38 billion.

PwC Greater China private equity group leader David Brown said there is strong interest among Chinese companies to acquire natural resource businesses, high technology companies, machinery and equipment manufacturers and the automotive sector.

Private equity boom

Private Equity (PE) is an important source of capital for private enterprises in China. Nearly 580 transactions involved PE activity, an increase of 66%.

PwC expects more growth in outbound M&A deal activity in 2011, driven by the demand for natural resources as well as a thirst for technologies to bring back to the China market.

Within China, M&A deals are dominated by domestic transactions, which grew 6% to 2,947 deals in 2010. Their value increased by 41% to $131 billion.

Foreign investment is also increasing with inbound M&A activity growing by 32% to pre-financial crisis levels.

 

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to International Accounting Bulletin