Chinese investors return to global deals market in second quarter
Baker McKenzie study records 94 international M&As agreed by Chinese companies, worth US$35.9 billion
Chinese investors started returning to the global mergers and acquisitions (M&A) market in numbers in the second quarter, becoming the second most-acquisitive deal-making country with 94 M&As valued at US$35.9 billion, according to law firm Baker McKenzie’s Cross-Border M&A Index released on Thursday.
Following a challenging first quarter, impacted heavily by government’s tightening reins on overseas Chinese deals, domestic investors were still actively buying up assets in the transport and industrial sectors, especially.
Top of the list was the US$13.8 billion acquisition of LogiCor Europe Limited (UK) by China Investment Corporation’s (China), said Baker McKenzie.
Technology and consumer segments were also favoured by Chinese investors, as acquisitive HNA conglomerate bought 16.8 per cent of Swiss-based travel retailer Dufry in April, while technology heavyweight Tencent invested in Indonesian car-hailing service company Go-Jek, according to Reuters.
“We continue to see an increase in deal value as companies choose to invest more money in a smaller number of handpicked deals,” said Michael DeFranco, Baker McKenzie’s global head of M&A.
We continue to see an increase in deal value as companies choose to invest more money in a smaller number of handpicked deals
“While volume decreased in Q2, we are encouraged by activity in the EU and the return of China to the deals table.
