Xiao Feng Zhang Abstract: Under the contemporary development of economic development of economic globalization, the advantages that large-scale enterprises have in technology and scale make the presence of large-scale multinational group of companies have become a symbol that can measure the comprehensive strength and status of a nation. It is imperative to develop the large-scale multinational enterprises for their important and active role in the competition between nations, especially for private enterprises in China to improve their international competitiveness.
During the first three quarters of this year, several mainland Chinese mainland enterprises were focusing on overseas investment with listed companies continuing to make up the bulk of the group engaged in foreign mergers and acquisitions.
More companies are seeking overseas acquisitions to hedge against the fluctuations of the CNY exchange rate, while gaining stable cash flow of foreign currency through mergers, Mr.
Private enterprises' overseas mergers and acquisitions tend to be more about acquiring advanced technologies, management experience, talents, brands, services and overseas market shares, focusing on media and entertainment business, high-end manufacturing, consumer goods businesses with a good brand, supply chains and customer resources, Mr.
conducted with Chinese companies, M&A specialists and driving Chinese companies overseas to build capabilities Source: “China Top Enterprises,” China Enterprise Confederation & China Enterprise Directors Association, IBM Institute for Business Value China analysis Chinese enterprises’ overseas M & A reached $ billion in , and the number was times that of With Chinese enterprises’ increased overseas M & . Overseas M&A activity by Chinese companies has skyrocketed in the last several years. Virtually all these acquisitions have been for cash, leading to a massive outflow of foreign exchange from China and financing issues for acquirers.
State-owned enterprises are still more interested in energy, minerals and other traditional resource projects, but they have been also active in investing in agri-business, health care, environmental protection and other industries, Mr.
Those overseas mergers and acquisitions targeted at the financial investment sector have been remarkably more active.
In the first three quarters, the number of Chinese companies acquiring financial investment enterprises has more than doubled increasing from 56 in to by this year.
In terms of investment, real estate is the financial investors' first choice for overseas mergers and acquisitions, with funds totaling USD8. This is followed by industry USD7.This statistic depicts the value overseas mergers and acquisitions (M&As) by enterprises in China in the first half of , by leading destination.
During this period, the value of outbound. On February 11, , the NDRC issued the Catalogue of Sensitive Industries for Overseas Investment (the Catalogue), and the Standard Forms Related to Administrative Measures for Overseas Investment by Enterprises (the Standard Forms), both of which will come into effect on March 1, Status quo The overseas M&A of Chinese enterprises started in the s and could be roughly divided into three phases.
The first phase was from the s to the year , when Chinese enterprises just entered the international market and tried to ‘cross the river by feeling the stones’ and to discover acquisition opportunities.
By the end of , the news of overseas investment and merger by Chinese enterprises kept coming. A PricewaterhouseCoopers report shows that the total volume of overseas investment and M&A by Chinese enterprises may have reached USD 30 .
Statistics from the research center show from this year, Chinese enterprises in overseas M&A eyed on biotechnology, health care, environmental protection and advanced manufacturing, and the United States, Europe, Australia and other developed countries are the main destinations.
Jan 30, · The motivations and strategies for Chinese enterprises' overseas acquisitions vary from industry to industry. China Corporate/Commercial Law EY Chen & Co 30 Jan China: Overseas M&A Strategies In The Pharma Industry.