Recent research on China Outbound M&A published by lawyers Squire Sanders and Mergermarket has shown a dramatic increase in the volume and value of acquisition by Chinese buyers around the world. Between 2007 and 2012, M&A activity has increased 93% by number of deals (to 178) and nearly 300% by value (to $64.5bn).
While the Energy and Resources sector accounts for a large proportion of this activity, Chinese acquirers have been particularly busy across the Industrial, Consumer, Leisure, Media & Technology and Transportation sectors, seeking new channels and market positions in attractive Western markets and access to technology and consumer brands which they can repatriate to China, often to leverage in their domestic markets. Geographically, North America, the UK and Germany have all been a focus for Chinese groups, accounting for 59 deals, or c.33%, of all outbound deals in 2012.
The results of this research unequivocally endorse Livingstone’s strategy of establishing a physical presence in Beijing with a focus on working with Chinese acquirers, most of them state-owned enterprises, in conjunction with our offices in London, Chicago, Dusseldorf and Madrid.