The 'Global M&A Insights, H1 2016' report from Allen & Overy has found that the pace of outbound Chinese M&A is accelerating, with the number of ‘megadeals’ valued above $1.5bn involving a Chinese state-owned or private company having almost eclipsed the total for the whole of 2015 in the first six months of this year alone. While China accounted for just 1.7 per cent of the global M&A market ten years ago, and just 6.3 per cent five years ago, the country’s M&A tally for 2016 has it on track to cover a staggering 26 per cent of the global market this year – more than eight points higher than for the same period in 2015. Globally, M&A values are down 22.5 per cent and volumes are down 7.8 per cent – but the firm predicts that the Chinese acceleration will be resilient to the clamping pressures felt elsewhere. ‘We see no sign of outbound activity slowing,’ says the report, arguing that domestic push factors like INSERT HERE will continue to push deals through despite economic and political uncertainties such as Brexit, commodity prices, fluctuating interest rates and regulatory shifts.
Sources: Australasian Lawyer; Allen & Overy
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