Chinese enterprises have been playing an important role in the cross-border M&A arena, with deal values increasing from US$10.3 billion in 2008 to a record high of US$65.2 billion in 2012, more than five times growth over the past five years, according to PwC analysis. It resonates a new global M&A dynamic that clearly reveals more high growth market (HGM) companies are investing into mature markets.
While Chinese enterprises are actively looking for outbound investment opportunities, PwC points out that tax planning and post-deal integration are critical issues that require high-level attention and early planning to ensure a successful M&A deal.
Between 2008 and 2012, HGM companies invested US$161 billion into mature market companies, outstripping the opposite flow of US$151 billion, says PwC in a recent report titled Resetting the Compass: Navigating success in deal-making for mature market sellers and high growth market buyers.
The report also shows among five high growth markets, China has been the leader since 2009, accounting for nearly 70% of HGM investment into mature markets in terms of deal value in 2012.