China Deals - a wind of change for China - Europe mergers and acquisitions

Looking behind the numbers, we explore how the nature of the investors and the targets involved is changing

Source: PwC UK

Our second edition of China Deals focuses on two significant stories.

Firstly, while China’s merger and acquisition (M&A) activity for 2012 actually fell to a five year low in volume terms, and though volumes were down by 7% on those of 2011, China’s outbound deal value actually rose by an impressive 54%.

Importantly, European companies were among the biggest beneficiaries of that rise, with Chinese investments in the region up by 25% (from 44 to 55), representing 29% of all of China’s outbound deals.

Secondly, in 2012 China’s Europe-bound investment flows were five times greater than European China-bound investments.

This sets a new benchmark for Chinese investments into Europe and, as we discuss in this edition, one that we believe heralds a shift in direction for M&A flows over the coming years.