Bankers hoping for a huge surge of Chinese overseas deals

Chinese overseas deals ChemChina

This week’s record-breaking $43 billion bid from ChemChina for Syngenta has western bankers bracing, and hoping, for a huge surge of Chinese overseas deals. While Chinese companies have long been interested in snapping up foreign assets, mergers and acquisitions advisers compare the latest spate of deals with the Japanese dealmaking boom of the 1980s — when a wave of Japanese companies snapped up assets including New York’s Rockefeller Center and movie studio Columbia Pictures. Already this year, four of the five biggest cross-border deals have involved Chinese groups bidding for US and European assets worth $61.7 billion in total. ChemChina’s deal for Syngenta is the biggest yet — and deemed indicative of Chinese companies determination to secure quality strategic assets.

 

James Fontanella-Khan, Don Weinland and Arash Massoudi

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