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November 29, 2016

chinese buyout of american business this year exceeds 100 deals valued over $60billion

"chinese buyout of american business this year is over  100 deals  valued over $60billion "

"top 10 biggest chinese buyout of  foreign business"
Biggest Chinese Firms Buying out Foreign Companies

More money flowed out of China last year than in any year before, though it is hard to say exactly how much. Estimates vary from more than $500 billion to $1 trillion. In 2014, just $134.3 billion left China.In 2016, China's outbound foreign direct investment (OFDI) will likely grow even faster than in previous years,according to a report by the National Committee on U.S.-China Relations and a research firm Rhodium Group.A significant share of that capital outflow has already found a home in North America. So far this year, 72 deals (including merger/acquisition and private placement) valued at over $7.5 billion have closed and 27 new deals valued at over $33 billion targeting U.S.-based companies have been announced.That makes it exactly 99 deals that are valued at more than$60billion as of November 2016. 

This compares to 59 deals by Chinese Companies valued at $2.9 billion closing during the same period last year, per data compiled by S&P Capital IQ. The average deal announced so far this year is also much bigger this yeat, a whopping $1.5 billion, an eight-fold increase from last year. Bearish Stock markets in China has not stopped Chinese firms from going on a buying spree for American companies.Direct investments from China put over $15 billion into transactions in the U.S. last year, a near-30 percent increase compared to the previous year and a new all-time high

Moreover, of 27 deals announced this year, five are valued in excess of a billion dollars each and include high-profile transactions such as the acquisition of luxury hotel owner Strategic Hotels & Resorts by Anabang Insurance Group for $8.2 billion, Ingram Micro by Tianjin Tianhai Investment for $7.2 billion (upon completion of the transaction, Ingram Micro will operate as a subsidiary of TianjinTianhai, consolidated under HNA Group) and GE Appliances by Qingdao Haier for $5.4 billion

According to Dealogic data, Outbound M&A spending took a total of $90.6 billion out of China in 2015.Meanwhile the 10 (mostly state-owned) Chinese companies that spent the most money buying foreign businesses last year did $46.6 billion in deals, representing between 5 and 10% of the capital that left China’s borders.