The first two months of 2016 yielded multibillion-dollar deals between state-owned companies and private enterprises. (Photo : Getty Images)
Outbound mergers and acquisitions are expected to hit record high this year, industry analysts and experts say, according to a report by China Daily. The prediction is based on the high-profile investments that took place in the first two months of 2016.
These outgoing M&As will also help boost the world economy, according to Xing Houyuan, deputy director of the Chinese Academy of International Trade and Economic Cooperation.
"The worldwide economic slowdown and change of landscape in the global industry chain offers a great opportunity for Chinese companies to purchase overseas assets that they deem valuable," said Xing in an interview with China Daily.
"Any industry could be a target for Chinese companies today," Xing added.
Experts have come to this conclusion as the first two months of 2016 yielded multibillion-dollar deals between state-owned companies and private enterprises. The industries included finance, consumer electronics, agriculture, and even the Internet.
Just recently, a consortium led by Qihoo 360 Technology Co. was able to successfully bid $1.2 billion to buy Opera Software ASA, a Norwegian Web browser developer. Based in Beijing, Qihoo is a company that specializes in online security.
China National Chemical Corp. (ChemChina) also announced plans to buy Syngenta, a Swiss company specializing in pesticides and seeds, for about $43 billion. To date, it's the largest overseas purchase made by a Chinese company.
The takeover, according to Ren Jianxin, chairman of ChemChina, will help Syngenta build its presence and expand operations in China, where agriculture is a big industry.
February also saw the first time a United States stock exchange was to purchased by Chinese companies. Led by Chongqing Casin Enterprise Group, a group of Chinese investors announced intentions to buy the Chicago Stock Exchange.
Prior deals that took place in January included Haier Group's purchase of General Electric's appliance business for $5.4 billion and Wanda Group's acquisition of Legendary Entertainment for $3.5 billion.
So far, Chinese companies have already spent a staggering $55 billion on outbound M&As in contrast to overseas M&A deals last year, which was valued over $112 billion in total.
