Chinese M&A abroad on the rise

Updated On: Nov 17, 2010

Chinese buyers have accounted for a tenth of cross-border merger and acquisition deals by value this year, bringing new energy and capital to struggling companies but also leading to concerns that policy, not profit, would drive decsions. Such concerns led to Australia and Canada creating obstacles for China's state-supported firms.

In an article in the Economist, it is argued that as China invests more in the global economy, its interests "will become increasingly aligned with the rest's of the world's; and as that happens its enthusiasm for international cooperation may grow".

In the meantime, the Wall Street Journal's Alison Tudor quotes Wang Ran, chief executive of a boutique investment bank in China, that Chinese acquisitions may become more focused on brand-name companies in the US and Europe, which would be a shift from natural resources and manufactured goods.

Chinese acquisitions: China buys up the world [The Economist, 11 Nov 2010]
China's M&A volume down almost 30% this year [Marketwatch, 11 Oct 2010]
New Direction for Chinese M&A: Brand Names? [Wall Street Journal Deal Journal, 16 Nov 2010]

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