Chinese enterprises invest in overseas mergers and acquisitions

Chinese enterprises finalised a record 176 mergers and acquisitions (M&A) overseas in the first nine months of 2014, an increase of 31% since last year, according to a report released by accounting firm PwC last week.

Chinese enterprises invest in overseas mergers and acquisitions

Chinese enterprises finalised a record 176 mergers and acquisitions (M&A) overseas in the first nine months of 2014, an increase of 31% since last year, according to a report released by accounting firm PwC last week.

Amongst them, private enterprises completed 120 M&A transactions, more than doubling the number carried out by state-owned enterprises which make them the major force in the current market.

In the first three quarters of 2014, the total value of overseas M&A transactions by Chinese enterprises reached approximately $40 billion. A researcher from PwC states that this is positive for other continents too; "Chinese companies, especially private enterprises, are actively seeking quality M&A targets in North America and Europe, aiming to introduce advanced technology and strong brands to Asia."

In the meantime, they are transferring manufacturing bases from China to other countries in Asia and developing emerging markets, he said. Due to the weakness of the global economy and the slowdown in China's economy, PwC estimates that Chinese enterprises will generally remain active in overseas M&A activities in 2015.


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