China Watch Blog has learnt that China has completed 204 merger & acquisition transactions in the first quarter, down 22 percent from the fourth quarter in 2011.
According to the latest figures by research institute Zero2IPO as reported by Shanghai Daily, there were 80 percent, or 165 cases involving domestic M&As at a total of US$4 billion; including 28 overseas acquisitions at US$11.6 billion, and 11 foreign acquisitions of US$630 million.
Cross border and overseas M&As showed a strong growth in the first quarter with close to 80 percent growth, but foreign investment acquisitions in the first quarter had a drastic drop of 78 percent compared to the fourth quarter, said the report.
“As advanced economies have been slowing down growth since 2011, foreign companies lack of the ability to conduct M&As with Chinese companies,” said the report. “At the same time some Chinese companies have become powerful and buy struggling foreign companies.”
Most of the completed M&As are in the sectors of energy and mining, industrial raw materials and processing as well as construction and engineering.
“The Chinese economy has achieved stable growth, which encouraged the need of Chinese companies for overseas energy,” said the report.If you think China Watch Blog's information is useful, click on cup of coffee on left hand side and make a small contribution via PayPal