Record 257 Overseas M&A Deals Sealed in the First Three Quarters of 2015

Chinese mainland enterprises secured a record 257 overseas mergers and acquisitions in the first three quarters of 2015, surpassing the total of the whole of last year’s deals, with an aggregate value hitting US $45.2 billion, rising slightly compared with the corresponding period of last year, according to a report released by PricewaterhouseCoopers (PwC).

Privately owned companies continue to be key players, deals they sealed amounting to nearly three times that of state-owned enterprises for the same period. Investors in privately owned enterprises mainly look to overseas manufacturers with advanced technology and consumer companies with brand and customer assets, according to the report.

The report also showed that listed companies led the Chinese mainland’s outbound M&A deals, accounting for 62 percent of the total in the first three quarters, and that the average volume of transactions pitched much higher than that of non-listed companies.

“From a financing perspective, easy monetary policies, low interest rates and reserve ratios, and a significant surge in China’s stock market in the first half of 2015 have helped to drive the deals,” said Li Ming, PwC China’s advisory service leader in Central China.

Zhuang Shuqing, international tax service head of PwC China, pointed out that a slew of initiatives taken by the Chinese government, and the set up of financial institutes such as the Silk Road Fund and the Asian Infrastructure Investment Bank (AIIB) are supportive measures to encourage Chinese enterprises to conduct outbound M&A, especially in sectors such as infrastructure and public service.