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在线翻译:
szdaily -> Business
Merger and acquisition deals decline by 20 percent: PwC
    2017-August-28  08:53    Shenzhen Daily

Zhang Yu

JeniZhang13@163.com

MERGER and acquisition (M&A) activities in China fell to US$283 billion in the first half of 2017, representing a 20 percent decline, according to a latest report from PricewaterhouseCoopers (PwC), which expects a slower pace over the remaining of the year.

The total value of the deals was down across the three main sub-sectors (strategic, financial and outbound) with fewer mega-deals. Outbound deals, though down 13 percent, increased 8 percent to a new half-year record of 482 transactions.

“The absence of high profile mega-deals has clearly affected the overall value of M&A activity,” said Roger Liu, a Hong Kong private equity leader with PwC’s China division. “But the fact that the volume of outbound transactions is not at a record high indicates that deals with a sound strategic rationale are still encouraged.”

Domestic strategic M&A fell by around 15 percent. Only 10 deals were in excess of US$1 billion, compared with 15 in the second half of 2016. Foreign inbound investment, though much smaller by comparison, was at its highest level in two years with some larger-sized deals and a step-up in investment from Japan.

Real estate M&A hit a three-year high, which was mainly because of the two mega deals worth US$18 billion in aggregate involving China Vanke. Technology deals also saw a slight increase.

Private equity (PE) and financial buyer activity have fallen from a significant peak in the first six months of the year but activity remained robust overall, according to Gabriel Wong, head of PwC China division’s corporate finance and leader of PwC’s Belt and Road division.

He added that outbound deals are an increasingly important part of that trend, which represented a quarter of PE deals in the first half of this year.

There was a significant upturn in exit activity as financial sponsors took advantage of high valuations and bullish equity markets, especially within China. The first half of the year also saw 161 IPO exits for PE/VC backed deals, with the mainland A-share market being the preferred exit route.

PwC expects China’s M&A deals to slow slightly in the second half of 2017. However, overall activity remains robust and further growth is expected in 2018, it said.

 

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