Chinese cross border M&A’s rise in 2011

Despite a slowing global economy, cross-border mergers and acquisitions (M&A) in China increased by almost 100 per cent in terms of the disclosed value of the transactions according to a report released yesterday by Zero2IPO Research Centre.

Chinese companies completed 110 overseas M&A deals last year and the disclosed value of the transactions was $28 billion, a growth of 93 per cent and 112.9 per cent respectively.

Overseas mergers and acquisitions by Chinese asnd foreign companies were the two reasons for the flourishing Chinese market of cross-border M&A in 2011, said the report.

According to the report, there were 66 M&A deals made by foreign companies in China, an increase of 50 per cent compared to last year, while the disclosed value of transactions rose by 209.2 per cent to $6.86 billion.

The acquisition of Chinese snack and candy maker Hsu Fu Chi International Ltd by Nestle for $1.7 billion, (See: Nestle to spend $1.7 billion for controlling stake in China's candy maker) was the biggest acquisition made by a foreign firm of a Chinese company last year.

The report also said that the total volume and also value of China's total M&A deals in 2011 hit a record high in the past six years.