Outbound M&As on the rise, says report

By Cai Xiao and Hu Haiyan (China Daily) Updated: 2012-12-27 09:56

Since the start of the year, there have been some large-scale M&A deals in the domestic medical and healthcare industry.

According to the report, government policies and further consolidation of the medical industry mean even more M&A deals are expected in the sector in 2013.

According to ChinaVenture, by the end of November, the value of M&A deals announced totaled $266 billion, compared with $103.5 billion in 2007.

"The number and value of completed outbound M&A deals have greatly increased. One of the main reasons is that Chinese companies have been showing great confidence in developing their businesses by merging with and acquiring overseas companies," said Wan.

Separately, a report by law firm Clifford Chance LLP said that Chinese companies will continue to focus on the M&A markets of China, Africa and Latin America.

The underlying rationale for many deals in the US and Europe is actually to increase company exposure to higher-growth markets elsewhere.

However, Qiu Bochun, a lawyer at US-based firm Cooley, which helps Chinese companies to conduct business overseas, said that Chinese companies should be more cautious when they go abroad.

"Doing M&A overseas is much more complex because of the different cultural and investment environments in different nations. To make the M&A deals successful, the companies should know more about local markets, their laws and the business environment," said Qiu.

Contact the writers at caixiao@chinadaily.com.cn and huhaiyan@chinadaily.com.cn

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