2018-2009年第二季度中国并购市场研究报告_125页_7mb

Q2 2009 China Merger & Acquisition Report Summary

Core Content

This report provides an overview of the M&A market in Q2 2009, both globally and in China, with a focus on cross-border M&As, industry breakdowns, and VC/PE-related M&As. It also includes a special analysis on the foreign language education and training industry in China and outlines the outlook for the M&A market in Q3 2009.

Main Points

Global M&A Market in Q2'09

• Economic Situation: The global economy was still recovering from the financial crisis, with signs of stabilization and growth in emerging economies, especially in Asia.
• M&A Activity: A total of 9,214 M&A deals occurred in Q2'09, up 34.2% quarter-on-quarter, with a disclosed value of $615.10B, a 17.2% increase.
• Market Trends: The M&A market showed a rebound in Q2, but remained at its lowest level since 2004 in the first half of the year.
• Regional Performance:
  • The U.S. M&A value dropped by 45.0% year-on-year to $365.70B.
  • The Asia-Pacific region saw a 16.0% decline to $274.00B.
• Advisory Income: M&A advisory incomes fell sharply for major firms, with Goldman Sachs earning $512.00M, a 53.0% decline from the previous year.

China M&A Market in Q2'09

• Total Deals: 55 M&A deals occurred in Q2'09, with 47 disclosing a combined value of $5.82B.
• Industry Distribution:
  • Traditional industry: 29 deals, 27 with disclosed value, totaling $5.10B.
  • Services industry: 6 deals, 3 with disclosed value, totaling $160.06M.
  • Broad IT industry: 14 deals, 11 with disclosed value, totaling $419.31M.
  • Bio/Healthcare industry: 4 deals, all with disclosed value, totaling $113.71M.
  • Clean-tech industry: 2 deals, both with disclosed value, totaling $28.49M.
• Government Support: The Circular on Business Income Tax for Restructuring was issued, providing tax exemptions for corporate restructuring and reducing M&A costs.

Cross-border M&As in Q2'09

• Total Deals: 13 cross-border M&A deals, 10 of which disclosed a total value of $4.31B.
• Quarter-on-quarter:
  • The number of deals dropped by 40.9%.
  • The total value increased by 178.5%.
• Industry Distribution:
  • Traditional industry: 9 deals, 95.8% of total value.
  • Services: 2 deals, 3.4% of total value.
  • Broad IT: 1 deal, 0.2% of total value.
  • Clean-tech: 1 deal, 0.6% of total value.
• Consideration Range:
  • 60% of deals had a value less than $100M.
  • 20% of deals had a value between $20M and $100M.
  • 40% of deals had a value less than $20M or more than $100M.
• Geographical Distribution:
  • 8 deals were initiated by Chinese enterprises, accounting for 61.5% of the total.
  • 7 deals were initiated by foreign enterprises, with the UK deal valued at $145M (3.4% of total) and the Singapore deal at $15M (0.3%).

Industry Breakdown of M&A Market

• TMT Industry: 14 deals, 11 with disclosed value, totaling $424.06M.
• Energy Industry: 7 deals, totaling $2.76B.
• Bio/Healthcare Industry: 4 deals, totaling $113.71M.
• VC/PE-related M&As: 10 deals, 8 with disclosed value, totaling $235.66M. The number of deals increased by 66.7% compared to the previous quarter, but the value decreased by 34.8%.

VC/PE Opportunities in Foreign Language Training Industry

• Market Overview: The foreign language training industry in China has seen significant development, with a focus on the education system and market subdivisions.
• Investment Trends:
  • VC/PE investments in the industry from 2002 to H1'09 are analyzed.
  • The industry is highly competitive, with opportunities in the context of economic downturn.
• Case Study: Wall Street English (China) was acquired by Pearson Plc for $145M, highlighting the investment value of weak cyclical industries.
• Opportunities and Risks:
  • Investment opportunities are expected to grow with increasing demand for foreign language education.
  • Risks include regulatory challenges, market saturation, and non-business factors affecting overseas acquisitions.

Key Information

• Methodology: Data was collected through market surveys, interviews, and public information verification.
• Research Scope: The report covers cross-border M&As, TMT, Energy, Bio/Healthcare, and VC/PE-related M&As.
• Exchange Rate: US$1 = RMB6.83 as of June 30, 2009.
• Report Structure: The report includes an introduction, five main chapters, and an appendix with industry classifications.
• Challenges: Chinese enterprises faced difficulties in overseas acquisitions due to rising commodity prices and non-business factors. The CHALCO-Rio Tinto deal was aborted.
• Outlook: The report forecasts the M&A market in Q3'09, considering both global and Chinese economic conditions.

Conclusion

The Q2 2009 China M&A Report highlights the resilience of the Chinese M&A market amid global economic challenges. While the global market remained weak, China's M&A activity showed a stronger recovery, with notable cross-border deals and a focus on VC/PE opportunities in the foreign language education sector. The report also emphasizes the importance of government policies and the potential for growth in the domestic market.