China overtakes US as world’s largest assets acquirer

Dealogic data shows China’s outbound M&A in first nine months is world’s largest for the first time, though value of withdrawn deals also rises

China has overtaken the US in outbound mergers and acquisitions for the first time, underscoring a global buying spree driven by the Chinese economy’s growth over three decades and Beijing’s programme to encourage companies to buy assets and technology from abroad.

In the first nine months of the year the total value of mergers and acquisitions by Chinese companies jumped 68 per cent year on year to US$173.9 billion, according to data by Dealogic.

The US has been the top cross-border acquirer in the first nine-month period since 2008, according to Dealogic.

However, not all Chinese deals closed as national security interests trumped economic gains.

The technology sector had the highest number of outbound deals that didn’t close, with 10 bidders seeing deals worth US$10.1 billion either withdrawn, rejected by the target company, or had offers expire in the first nine months.

China ranked as the second biggest fee paying nation globally behind the US, and accounted for a record high 11.7 per cent share of the global investment bank fee pool.

Full article: China overtakes US as world’s largest assets acquirer (South China Morning Post)

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