China's growing share of outbound M&A

Volume of outbound acquisitions by Chinese companies boosted by US pork deal.


Chinese buyers have spent $35.1 billion on overseas mergers and acquisitions so far this year, representing a record 9% share of global cross-border M&A, according to Dealogic.

Overall deal volume has fallen 12% compared to 2012, but is still the third-highest figure on record, behind $40.8 billion at his point in 2008 and $40 billion in 2012. However, inbound M&A continues  to be much lower than the record years in 2010 and 2011 (see chart below).

China is the world’s second-biggest outbound acquirer after the US, which has spent $97 billion so far this year for a huge 24% market share. Roughly one-third of Chinese investments overseas — or about $11.8 billion — is targeted at the US, driven by the $7.1 billion bid for Smithfield Foods by Shuanghui International Holdings announced on May 29, 2013. It is the biggest Chinese acquisition of a US company on record

Oil and gas is the most targeted industry by Chinese acquirers outside China, with $9 billion so far in 2013, followed by $8.1 billion on food and beverage targets, and $7.9 billion on utility and energy.

Morgan Stanley leads the Chinese M&A adviser ranking in 2013 year-to-date with $14.1 billion, followed by Goldman Sachs with $12.4 billion and CICC with $12.4 billion.


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