As China’s economic influence continues to grow, inbound M&A activity has surged over the past 12 months with signs indicating deal flow will remain strong. However, international bidders and Chinese companies are both increasingly aware of the importance of in-depth due diligence.
In 2010, China’s inbound M&A volume was up by 20% compared to 2009. In the 12 months ended 30 September 2011, total inbound deal volume and value surged by 5% and 50% respectively, compared to the same period in the previous year. December 2010, March and July 2011 were the most active months.
Hong Kong and US bidders were most active in acquiring Chinese companies, accounting for 41% and 20% of China’s total inbound deal volume, respectively, in the 12 months ended 30 September 2011. Apart from Asian bidders in Singapore, Japan and South Korea, European companies have been seeking opportunities in China and the trend is expected to continue.