US China Business Development Associates


China’s M&A deals...

China’s M&A deals drop 11.2%

CHINA’S mergers and acquisitions market dropped 11.2 percent from April to US$12.13 billion in completed value last month, according to data by China Venture Co.

The figure still trails the record level of US$26.83 billion in completed M&As in October last year, the leading financial analysis website said in a report yesterday.

A total of 129 M&A deals were completed in 18 industries in May. Investors favored acquisitions in the manufacturing industry as 24 deals were inked last month, followed by 15 deals for IT and 14 for the energy industry, the report said.

Of the deals, 111 were between Chinese firms inside the country while 11 transactions were made by Chinese enterprises outside the country. The remaining seven were done by overseas firms on the mainland, the report added.

By value, the energy sector topped with US$3.87 billion while franchising reaped US$1.18 billion and real estate was third with US$1.07 billion, the report said.

Yanzhou Coal Mining Co’s acquisition of Australia’s Whitehaven Coal Limited was the biggest M&A deal last month.

Yanzhou, China’s fourth-largest coal producer, bought Whitehaven for US$3.79 billion in order to secure resources to meet rising domestic energy demand.