China’s overseas M&A’s reach new high
Statistics show that as of November 2016, the number of transactions amounted to 609 cases, a 24% increase compared to last year's figures
According to KPMG’s latest overseas mergers and acquisitions report, the pace of M&A’s in China has further accelerated since 2014 and reached a high point in 2016, Yicai.com reported.
Statistics show that as of November 2016, the number of transactions amounted to 609 cases, a 24% increase compared to last year’s figures, while total transactions reached more than US$ 200 billion, up 143% on year.
According to a recent cross-border mergers and acquisitions index issued by law firm Baker McKenzie, Chinese investors started returning to the negotiating table in the second quarter of 2017, and became the second largest foreign cross-border investment country with a total of 94 transactions.
The total transaction amount reached US$ 35.9 billion, up 148% over the previous quarter, the report said.
KPMG China Eastern and Huaxi District financial advisory services partner Wang Hong warned, however, that since the beginning of 2008, there have been cases of failure in individual cross-border mergers and acquisitions. as well as the industry as a whole.
“Although the number has risen, without a good implementation plan in advance and landing errors after the acquisition, (these) are still main reasons that lead to failed acquisitions,” Wang said.