China's M & A Transactions In The First Three Quarters Were &Nbsp High; Cross-Border Mergers And Acquisitions Grew Strongly.

Chinese market Merger Spring is coming quietly. In the first three quarters of 2011, under the double favorable environment of global economic recovery and China's strong economic development, China's M & a market continued to explode, and the number of mergers and acquisitions and transaction volume both set a new record.

M & A activity hit five year high

Data from Thomson Reuters show that Asia has been quite active this year in the field of mergers and acquisitions. In the first three quarters of 2011, the total amount of Asian mergers and acquisitions reached US $320 billion 800 million, slightly higher than US $309 billion 600 million in the same period last year. The largest target industry in Asia is the material industry, with 1222 transactions involving a total of 54 billion 800 million US dollars. Followed by energy and electricity and industrial sectors, the amount of M & A was $51 billion 700 million and $49 billion 900 million respectively.

Estimates for Asia in the first three quarters of this year, according to Thomson Reuters /Freeman Finance adviser Cost It was $2 billion 800 million, a slight decrease of 2.3% over the same period last year. Morgan Stanley received the highest consultant fee in Asia for $108 million 800 thousand, followed by Goldman Sachs, and received a consultancy fee of $97 million 900 thousand. Bank of America Merrill Lynch and Citigroup received $96 million 900 thousand and $96 million 400 thousand in consultancy fees respectively.

According to the data of the Qing Research Center, the M & a transaction continued to boom in the first three quarters, and the activity of M & A broke the record again, creating a new high number of M & A cases in five years. In the first three quarters of 2011, 763 mergers and acquisitions were completed in China, and the total price of 681 acquisition transactions reached US $38 billion 118 million. Compared with the same period last year, the number of M & A cases increased by 75% (436 last year). Among them, there are 635 cases of domestic mergers and acquisitions, and the number exceeds 80%.

It is worth noting that the number of mergers and acquisitions related to VC/PE has also increased significantly. In the first three quarters, 152 mergers and acquisitions occurred in VC/PE related enterprises, an increase of 166.67% over the previous year. In terms of the amount of transactions disclosed, the amount of M & A transactions this year also exceeds 70% last year.

The related M & A cases are distributed in 17 primary industries: biotechnology / health care, chemical raw materials and processing, machinery manufacturing, telecommunications and value-added services, automotive, Internet, construction and engineering. Among them, biotechnology, health care, telecommunications and value-added services, Internet and machinery manufacturing have become the most active industries in VC/PE related mergers and acquisitions this quarter. These industries are also areas closely watched by PE/VC capital.

Ching Ke research center believes that the strong growth of VC/PE related M & A proves that the share of merger exit in the exit way of investment institutions has improved significantly. VC/PE investors are increasingly using mergers and acquisitions to achieve exit and return to avoid risks.

Steady growth of cross border mergers and acquisitions

Transnational mergers and acquisitions have become the most prominent feature of the M & a market. Chinese companies are salivating overseas assets, while foreign capital has also given great interest to Chinese companies.

Data show that the first three quarters of this year, cross-border mergers and acquisitions showed strong growth, the merger and acquisition cases completed 128, an increase of 58.02% over the same period last year. The amount of the 89 cases disclosed is up to US $230.63, which accounts for 60.39% of the total M & A in the Chinese market this quarter.

Among them, the enthusiasm of overseas mergers and acquisitions of Chinese enterprises is particularly high, and the number and amount of overseas mergers and acquisitions also show an upward trend. In the first three quarters, 77 cases of overseas mergers and acquisitions were completed. The amount of 57 cases disclosed was 18 billion 847 million USD, accounting for 49.44% of the total M & A in China, and the average amount of mergers and acquisitions amounted to 330 million US dollars. Among them, China Sinochem Group Corp bought 3 billion 70 million of Norway's 40% stake in the state oil company and became the largest merger in the first three quarters.

A total of 51 cases of foreign mergers and acquisitions were completed. The amount of the 32 cases disclosed was $4 billion 216 million, accounting for 10% of the total market share in the current Chinese market, and the average amount of mergers and acquisitions amounted to US $132 million.

There is a trend of increasing annex in foreign M & A. the total volume of transactions in the three quarter was 25.4 times that of the previous quarter, up 391.7% compared to the same period last year. The number of M & A cases increased by 41.7%, up 70% from the same period last year. On the one hand, the total volume of foreign mergers and acquisitions increased sharply. On the one hand, there were several huge transactions in the foreign M & a transaction in the third quarter. For example, the acquisition of the 20% stake of Guangzhou bank Limited by Share Ltd at the price of US $690 million by Canada's Scotia bank. On the other hand, the market was in a wait-and-see attitude due to the introduction of the security review system in the previous quarter, resulting in a brief cooling of foreign M & A.

Cross border mergers and acquisitions have grown strongly, and overseas mergers and acquisitions and foreign mergers and acquisitions have been "blooming". The Qing Research Center believes that the surge in cross-border mergers and acquisitions is closely related to the activity of overseas mergers and acquisitions. In the gloomy environment of global economy, Chinese enterprises seize the opportunity to show their heroic appearance on the world stage, and the activity of mergers and acquisitions has increased significantly, especially in the energy and mineral industries.

On the other hand, foreign mergers and acquisitions also show a strong rising trend. The first is the further refinement of foreign investment review system and the clarity and guidance role of foreign capital mergers and acquisitions, and the return of international capital to the Chinese market. Secondly, the prosperity and development of enterprises in China. Excellent local enterprises attract the attention of international capital. In addition, the scale of foreign exchange mergers and acquisitions in this quarter is relatively large, making foreign mergers and acquisitions show a strong upward trend.