In the News: 10-Year Outbound Low; Antitrust Amendments; and UK Connect Suspended
January 05, 2020 | BY
Vincent ChowChinese outbound M&A hits decade low; draft amendments to anti-monopoly law released; and Shanghai-London stock connect suspended over political tensions
China outbound M&A hits 10-year low
China's outbound mergers and acquisitions (M&As) have plummeted to their lowest levels in a decade amidst a bruising China-U.S. trade war and growing scrutiny over Chinese investments globally. Chinese outbound deals totaled $41 billion in 2019, almost half that of 2018, according to Refinitiv data, Reuters reported. Meanwhile, outbound deals in the U.S. in 2019 fell 80% from the previous year to $2 billion.
The Committee on Foreign Investment in the U.S. (CFIUS) has been scrutinizing deals by foreign acquirers for national security risks. It has blocked several deals involving Chinese firms acquiring U.S. assets including Chinese company Kunlun and its acquisition of gay dating app Grindr due to data security concerns. The foreign investment watchdog has seen its powers significantly expanded in recent months over fears of Chinese access to sensitive U.S. technology. A PwC report released in August highlighted domestic deals as the main driver for Chinese M&A in the future.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now