According to Dealogic’s newest data till last Thursday, there are already 102 M&A projects initiated by Chinese enterprises this year, which values 81.5 billion dollars. Compared with the same period in last year, which has only 72 cases valuing 11 billion dollars, it surged nearly 7 times.
Within these 102 M&A projects, the most highlighted one should be ChemChina acquired Syngenta, the leading biotechnology company for nearly $43 billion, which hit the largest scale among all the Chinese enterprises overseas M&A projects.
2016 large scale projects also include: Haire brought home-use appliance business under General Electric for $5.4 billion; Zoomlion’s $3.3 billion acquisition of US machinery maker Terex; and the acquisition released last Wednesday that a unit of the Chinese conglomerate HNA Group said it would buy the technology distributor Ingram Micro for $6 billion.
What surprises Americans most is that Chinese enterprises are planning to buy the Chicago Stock Exchange. Chicago Stock Exchange (CHX) announced on February 5, Chongqing Casin Group signed a definitive agreement to acquire CHX. The transaction is expected to be completed during the next half year, but still is subject to regulatory approval. Bloomberg quoted a source of information saying that the deal involving an amount of approximately $ 100 million. At present, the Chicago Stock Exchange listed companies within the market capitalization are of more than 22 trillion US dollars.
Recently, foreign media also reported that China Anbang Insurance Group bid more than one billion Canadian dollars (about 4.73 billion yuan) to buy two-thirds stake of Canada's most important landmarks 3A grade office buildings in downtown Vancouver. If ultimately successes, this will refresh Vancouver’s record of maximum amount of real estate transactions, as well as Anbang’s largest single investment in the property market in Canada.
The reason behind the contrast situation
According to Thomson Reuters recently released data, in 2015, total global M & A transactions reached a record high of $ 4.7 trillion (about 31 trillion yuan). But since the starting of 2016, total global M & A transactions fell by 23%, with obvious contrast to 7 times the surge of Chinese enterprises.
It is commonly believed that the largest barrier between Chinese enterprises’ M&A in US would be the regulation and law in the United States. CFIUS is one of the biggest barriers.
（Source: China Chance Club）
