2015-11-12-德勤-2015大中华区境外并购报告_70页_2mb

China outbound momentum unabated despite economic uncertainty

This report analyzes China outbound M&A activities in the first half of 2015, a period marked by a record high in transaction volume and value, totaling US$56.8 billion, an increase of 70% in value and 25% in volume compared to the same period in 2014. The growth was particularly strong in the Technology, Media and Telecommunications (TMT) sector, which accounted for 43% of transaction value and saw a 209% increase. Financial Services also showed significant growth with a 176% rise in value.

Western Europe remained a key target region, contributing 24% of value and 23% of volume, driven by interests in advanced manufacturing and financial services. The U.S. was the second-largest destination, accounting for 20% in value and 29% in volume, with high-tech companies being favored.

Several factors contributed to this trend: relaxed capital flow regulations in China; stable valuations in mature markets; opportunities to acquire advanced technology and management practices; and sustained confidence despite economic uncertainty. Notable transactions included Hutchison Whampoa's US$15.3 billion acquisition of Telefónica UK, creating a leading mobile operator in the UK.

However, Chinese firms faced challenges adapting to Western management styles and regulatory environments, requiring professional integration support. Deloitte experts highlight the importance of thorough due diligence and strategic integration planning.

The overall trend reflects China's strategy to establish global presence and enhance competitiveness through strategic acquisitions, supported by initiatives like the Belt and Road program and increased outbound investment under regulatory liberalization.