China M&A

China: Record-Breaking Outbound M&A YTD 2016

China’s surge in outbound M&A activity this year is helping drive Asian annual outbound M&A to record levels, hitting a high of US$ 200 billion between January to September 2016, surpassing 2015’s full year M&A Asian outbound deal value of US$ 199.6 billion according to data from Mergermarket. The data includes recent purchases such as Zhongwang International’s US$ 2.3 billion acquisition of U.S. aluminum manufacturer Aleris which was announced in August this year.

Asia outbound M&A deal value (US$ billion)

Driven by China’s booming outbound M&A activity, Asian outbound M&A deal value for the first nine months pf 2016 has surpassed last year’s total Asian outbound M&A deal value.

With 173 deals worth US$ 128.7 billion, China has accounted for 64.3% of Asian outbound M&A value so far this year. Nearly 60% of China’s outbound M&A deal value (US$ 76.5 billion) and volume (101 deals) went into European businesses.

US$ 72.3 billion worth of Chinese outbound M&A deals have been made in businesses in the Industrials and Chemicals sector commanding the lion’s share of Chinese outbound investment so far this year.

Chinese outbound M&A deal value by sector (%) Jan-Oct 2016

36% of Chinese outbound M&A involved businesses in the Industrials and Chemicals sector while 27% of deals were in the Technology sector.

China’s outbound M&A deal value between January and October this year has increased 228% from the same period last year according to data from Bloomberg.

China total outbound M&A deal value - LD Investments

China’s outbound M&A deal value for the first ten months of 2016 is more than double compared to the total M&A deal value in 2015.