China’s TMT deals top US$100bn for second straight year
Tencent and Didi Chuxing complete sector’s biggest single transactions in first nine months, as total M&A values in the sector reach US$110.01bn
Mergers and acquisitions in mainland China’s combined technology, media and telecommunications (TMT) sector have passed the US$100-billion mark for the second consecutive year, led by big-ticket deals involving Tencent Holdings and Didi Chuxing.
Data obtained from Mergermarket showed the latest milestone was reached much earlier than last year, as 314 deals valued at US$110.01 billion were completed in the nine months to September 30.
There were 349 transactions worth US$73.07 billion recorded in the same period last year.
Mergermarket financial researcher Sophie Jin said the pace of mergers and acquisitions is being driven by Chinese companies’ increased appetite for high-value assets, including media content, financial technology and so-called big data resources.
“China-related TMT deals are expected to continue their strong growth this year, despite macroeconomic factors like Brexit and the US election,” Jin said.
The total value of Chinese mergers and acquisitions in the TMT sector last year reached a record-high US$156.79 billion on 481 deals, up from 324 transactions valued at US$53.98 billion in 2014.