Chinese turn M&A sights on Europe as US deals come under scrutiny, Credit Agricole executive says
- Making deals work in Europe are a matter of finding the ‘right approach, the right partners’
- M&A clients, not just Chinese ones, are facing greater regulatory scrutiny
Europe remains an attractive investment destination for Chinese companies even as scrutiny of Chinese-backed deals has risen in recent years, particularly in light of the ongoing trade war with the US, according to a top French banker.
“We see a lot of clients that identify in Europe a lot of opportunities and who have the financial strength and the expertise to be successful in Europe,” said Jacques Ripoll, chief executive of Credit Agricole’s corporate and investment banking arm. “Every geography, every country has its specific characteristics. We have seen a certain number of hurdles on the financing side, on the political side for some companies to acquire or develop businesses in Europe.
“Is this a no go? I don’t think so. It’s a matter of finding the right approach, the right partners.”
The European Union implemented a new framework this month to screen foreign direct investment into the 28-nation bloc, as concerns have increased in recent years about overseas-led mergers and acquisitions, particularly by Chinese firms.
In a report released on April 12, GP Bullhound, a technology advisory and investment firm, said that outbound deal volumes by Chinese technology investors into Europe increased 25 per cent in the first quarter as US regulators were seen as a hurdle to Chinese-led deals.