2015 Greater China Outbound M&A Spotlight
China outbound momentum unabated despite economic uncertainty
Deloitte Global Chinese Services Group and China M&A Services Team co-published the 2015 Greater China Outbound M&A Spotlight (the "Report").
Chinese outbound M&A investments in the first half (H1) of 2015 reached a record level and its growth rate surpassed that of major developed countries. During H1 2015, there were 173 Chinese outbound M&A transactions, worth US$56.8 billion which grew both in terms of volume and value from the same period a year ago. In H1 2015, China recorded significant capital outflows as Chinese investors stepped up their outbound investments as part of a diversification strategy in light of slowing growth in China. The global macroeconomic environment with low interest rates and low asset values in a number of major economies has also played a role in attracting China's outbound investments.
- Chinese outbound M&A deal volume increased by 25% from a year ago. Mature companies with advanced technology and management best practices continued to be in demand.
- Chinese outbound M&A deal value increased by 70% from a year ago, largely attributable to a few mega-deals, indicating that Chinese investors have continued to move up in the global value chain.
- Mature markets, such as Western Europe and the U.S. attracted the majority of Chinese outbound transactions in H1 2015.
- In H1 2015, the Technology, Media and Telecommunications, Manufacturing and Consumer Business assets in mature markets were the most attractive targets for Chinese outbound investors.
- A special case study on the Silk Road Economic Belt and the 21st Century Maritime Silk Road project and the establishment of a US$40 billion Silk Road Fund.