Foreign buyouts in China.....



Foreign buyouts in China worth US$14 bln last year
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Sep. 1, 2006 (China Knowledge) – Foreign companies have acquired more than 250
Chinese companies worth over US$14 billion over the 12 months ended Jun. 30,
2006, according to research carried out by Grant Thornton Corporate Finance.

The figures revealed that a total of 266 foreign companies from 41 different
countries bought a Chinese company each in the one year period in deals worth an
estimated total of US$14 billion, representing a 52% increase in deal value
terms from the same period a year earlier.

For the 12 months ended Jun. 30, 2005, 268 foreign companies bought a Chinese
company each in deals worth about US$9 billion in total.

The most aggressive buyers of companies were from the U.S., which spent US$5
billion on about 23% of the total number of acquisitions. This was followed by
the U.K., which spent about US$3.5 billion on Chinese investments representing
6% of the absolute number of deals.

Singapore came in third having spent about US$1.8 billion on acquisitions in
China, accounting for 11% of the total number of acquisitions.

In terms of industry, technology companies were the most popular constituting
16% of buyouts, followed by companies operating in the materials industry, which
amounted to 14% of total takeovers.

The industrials sector came in a close third at 13%, followed by the financial
services industry and the consumer products industry, which each accounted for
12% of acquisition deals.

However, the largest amounts of money were poured into deals within the
financial services industry. Companies operating in this industry in China
attracted US$10 billion, 71% of total amount spent, in foreign funds acquiring
Chinese companies.


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