Managing Partner Hans Halskov made two trips to China in the month of April 2016, and found the interests for M&A cross-border activities are reaching new heights. In the first quarter this year, Chinese companies’ cross-border M&A value has more than doubled.
Hans Halskov, “I predict it will triple by the end of the year, which is significant and no less than a paradigm shift. As the only specialized advisory company in the Nordics region, Across Partners is in a good position to gain from it”.
Some of this years’ sizable deals:
- Qingdao Haier to bought GE appliance business for $5.4 billion
- China National Chemical Corp to buy Swiss agricultural giant Syngenta for a record €37.4 billion
- HNA Group to buy Swiss Aviation Services GateGroup for €1.4 billion
- Beijing holding to buy German company WTE (EEW) for €1.44 billion
- China National Chemical Corp. to buy KraussMaffei Group for €925 million, one of the largest Chinese takeovers of a German company.
Mr. Ma Weihua, Director-General of the China Entrepreneur Club, was quoted in China Daily, “Even if China’s economic growth may slower, Chinese companies’ cross-border M&A will continue to strengthen.”
According to data from Dealogic, in 2015, Chinese companies’ cross-board hit a record of 598 transactions in total, amount $112.3 billion, significantly more than $71.4 billion in 2014 and 407 transactions. On the basis of Thomson Reuters’ primary statistics, in the first quarter of 2016, China’s total cross-border M&A has been as high as $101,1 billion.
Differences between countries in culture and consumer habits and companies’ different backgrounds will pose one of the major risks for M&A transactions. Therefore, foreign financial consultants participating in the M&A transaction and post-integration process will be a key factor in the ultimate success of the deal.