China's M&A activity likely to rise in 2018 after 2017 downturn, PwC report says

Updated 2018-01-24 11:24:01

China's M&A activity is expected to rise in 2018, in spite of a downturn in 2017, a report released by consulting firm PwC showed on Tuesday.

M&A activity in 2017 was down 11 percent year-on-year in terms of value to 1 billion, which was largely attributable to a reduction in overseas deals.

China's M&A activity had reached a record high in 2016, with a total value of 3.5 billion.

"While deals are down by both value and volume compared to a bumper 2016, the trend is still strongly upward on a five-year view," Wei Guo, PwC China transaction services partner, said in a note sent to the Global Times, adding that the number of deals was still the second-highest ever in 2017, as all of the main drivers of M&A activity are still in place.

The report pointed out that the number of mega-deals (those with a value in excess of billion) declined from 103 in 2016 to 89 last year, and this was also down to the drop in overseas deals.

Technology, industrial and consumer products continue to be the main sectors targeted in outbound deals.

The main aim is to bring technologies back to the domestic market in order to upgrade the industrial base, as well as to introduce new intellectual property, brands and products to China, the report said.

With greater policy clarity, outbound M&A deals are likely to resume their growth trend, it said.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58August 18 2018 20:37:26

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16August 18 2018 20:37:26

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18August 18 2018 20:37:26

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords