Dearth of Chinese technology, media and telecoms mega deals looms in 2017
Transactions see substantial decline from the same period a year ago, says Mergermarket data
The total value of mergers and acquisitions in mainland China’s combined technology, media and telecommunications sector shrunk by 50 per cent in the first quarter, which could augur badly for deal-making in the industry for the rest of this year, according to Mergermarket.
There were 54 China-related technology, media and telecoms deals worth US$8.8 billion recorded in the first three months of this year, down from 60 transactions totalling US$17.5 billion in the same period last year, data from the mergers and acquisitions intelligence service showed.
“That drop-off in both the number and size of deals in the first quarter is a reflection of China’s more stringent capital control, which has been implemented since late November last year,” said Mergermarket financial researcher Sophie Jin.
“There is a probability that China-related technology, media and telecoms deals in 2017 would see their lowest level in years.”