Scrutiny of Chinese M&A voided billions in deals

Scrutiny of Chinese M&A voided billions in deals

Share: 

Chinese acquirers are seeing a large number of cross-border deals blocked at home and abroad as a sharp increase in volume makes regulators on both sides of transactions more cautious, Linklaters said in a report Monday. Of the $220 billion deals announced by Chinese acquirers, $40 billion to $75 billion – or as much as a third of those potential transactions – were canceled or withdrawn last year, according to the report, citing analyst commentary and press reports. Many were scuppered over concerns relating to national security or interest. The stricter regulations on both sides are largely a reaction to the surge in outbound Chinese investments, Linklaters said. Buyers from the country increased their outbound spending by 15-fold in the last ten years, and more than doubled volume last year, according to data compiled by Bloomberg.