Magazines Archives - 2007 February
Competition Expected To Fuel M&As In China
CHINA can expect more mergers and acquisitions (M&As) this year as competition mounts, say analysts.
According to Thomson Financial report, M&A deals involving foreign acquirers totalled US$21.63 billion last year, with those for retail and other consumer businesses charting the most growth.
Companies with a share of the action last year included US electronics retailer Best Buy, which acquired Jiangsu Five Star Appliance for US$180 million.
Despite interest from foreign firms, domestic M&A deals continue to dominate the market, said the All-China Federation of Industry and Commerce (ACFIC). These include the purchase of Handan Steel by Baosteel Group and of Yongle by Gome.
Industry insiders have reportedly predicted the number of foreign M&As in China would continue to grow thisyear, with the focus likely to be mainly on the fiercely-competitive sectors of retail sales, IT and food.