Trends in M&A

China outbound deals: 2013 review and 2014 outlook

Australia continued to grow its share of China’s mergers and acquisitions in 2013, despite a 20% fall in the total value of China's foreign deals from US$66.4 billion in 2012 to US$51.5 billion in 2013.

The value of China's M&A activity in Australia, however, grew 34% to $7.7 billion in 2013 from $5.7 billion in 2012, its highest level since 2009.

Attracting 15% of China's total outbound investment, Australia remains the third largest destination behind the US and Canada. Australia continues to draw a disproportionate share of China's outbound investment relative to the size of our economy which ranks as the world's 12th biggest in terms of GDP.

Our latest Trends in M&A report explores these and other key findings from the 2013 review and 2014 outlook:
  • Deal value in North America and Europe fell significantly while activity in Africa, the Middle-East & Asia, and South America increased markedly
  • Energy and power deals continue to be the focus of China's foreign M&A activity accounting for 74% of total investment in Australia
  • China's non-resources investments continues to focus on real estate and food and agriculture
  • Looking ahead we anticipate a strong rebound in China's outbound investment in 2014, driven by government support for outbound investors, combined with continued economic growth, which is fuelling the demand for resources, infrastructure and services. A record high volume of deals recorded in the second half of 2013 provides further evidence momentum is returning.
The question for Australia is how can we continue to capture a bigger share of Chinese investment?

Download Trends in M&A - China outbound deals: 2013 review and 2014 outlook