China M&As surge as companies go global
By Vera Ye | March 9, 2015, Monday | 
Online Edition
Online Edition
CHINA’S merger and acquisition market gained traction last month thanks to vibrant outbound deals as Chinese companies stepped up global expansion, a report said today.
Merger and acquisition deals totaled 99 in February, including 87 domestic deals, 11 outbound investments by Chinese companies and one case of foreign purchase of Chinese assets, the Zero2IPO Research said in a report released today.
The number of deals fell 14.7 percent January due to the Spring Festival holiday while total transaction value surged 93.8 percent month on month to US$7.78 billion in February, reversing from a 60 percent decline in January, according to the research firm.
Value of domestic deals rose 11 percent from January to US$4 billion, accounting for 51.5 percent of the total, data showed.
Overseas acquisitions by Chinese companies valued at US$3.7 billion, representing 47.7 percent of the total and growing tenfold from January’s US$310 million, according to the report.
“Data indicated Chinese companies are accelerating their pace to expansion global footprint,” said Li Qun, researcher with Zero2IPO.
Jin Jiang International Holdings Co Ltd’s purchase of France-based Groupe du Louvre from Starwood Capital Group for US$1.48 billion marked the biggest outbound deal last month, followed by the Industrial & Commercial Bank of China’s acquisition of 60 percent stake in the London-based business of the Standard Bank Plc for US$770 million.
Energy and mineral sector see the most deals of 16, followed by 12 in property market and 10 in the financial sector.
Measured by value, retail sector topped with cases worth of US$1.8 billion and the financial industry was in the second place with deals of US$1.28 billion, trailed by US$757 million in the energy and mineral sector.
Merger and acquisition deals totaled 99 in February, including 87 domestic deals, 11 outbound investments by Chinese companies and one case of foreign purchase of Chinese assets, the Zero2IPO Research said in a report released today.
The number of deals fell 14.7 percent January due to the Spring Festival holiday while total transaction value surged 93.8 percent month on month to US$7.78 billion in February, reversing from a 60 percent decline in January, according to the research firm.
Value of domestic deals rose 11 percent from January to US$4 billion, accounting for 51.5 percent of the total, data showed.
Overseas acquisitions by Chinese companies valued at US$3.7 billion, representing 47.7 percent of the total and growing tenfold from January’s US$310 million, according to the report.
“Data indicated Chinese companies are accelerating their pace to expansion global footprint,” said Li Qun, researcher with Zero2IPO.
Jin Jiang International Holdings Co Ltd’s purchase of France-based Groupe du Louvre from Starwood Capital Group for US$1.48 billion marked the biggest outbound deal last month, followed by the Industrial & Commercial Bank of China’s acquisition of 60 percent stake in the London-based business of the Standard Bank Plc for US$770 million.
Energy and mineral sector see the most deals of 16, followed by 12 in property market and 10 in the financial sector.
Measured by value, retail sector topped with cases worth of US$1.8 billion and the financial industry was in the second place with deals of US$1.28 billion, trailed by US$757 million in the energy and mineral sector.
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