Date
29 March 2017
Patrick Yip (left) says Chinese firms are now focusing on deals worth more than US$1 billion each. Photo: HKEJ
Patrick Yip (left) says Chinese firms are now focusing on deals worth more than US$1 billion each. Photo: HKEJ

Acquisitions abroad by Chinese firms seen doubling in 2015

Chinese firms are speeding up the closing of overseas deals, potentially doubling their total value in 2015 from last year, said Patrick Yip Wai-man, country lead for mergers and acquisitions at Deloitte Touche Tohmatsu China.

Yip’s estimate is based on the fact that the total value of overseas acquisitions surged 70 percent from a year ago to US$56.8 billion in the first half of this year, the Hong Kong Economic Journal reported Wednesday.

The total number of such acquisitions in the first half climbed 25 percent to 173.

The lackluster economy in Europe and high growth potential of technology firms in the United States are key factors driving overseas mergers and acquisitions by Chinese firms, Yip said.

The figures show that Chinese firms are now eyeing large acquisitions, he said.

Yip expects more deals worth more than US$1 billion each to become more common, especially in the US and European markets.

This is probably because more time and human resources are required to achieve real growth from smaller deals worth below US$500 million, he said.

[Chinese version中文版]

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