Wednesday, August 19, 2009
Chinese M&A Activity Forecast to Rise
M&A activity in China, in particular outbound mergers and acquisitions, is expected to increase according to a briefing by FinanceAsia.com. However, Chinese buyers are sensitive to political factors and to being perceived as overpaying. Therefore small and medium sized transactions are expected to dominate the market and companies may prefer making low profile deals or asset purchases with no public market valuation. The briefing also mentions that interest remains high in the natural resources, commodity and energy sectors from Chinese investors but with growing interest in the agribusiness sector.