The hottest mergers and acquisitions of Chinese en

2022-10-16
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China's enterprise mergers and acquisitions continue to rise, and the manufacturing industry plays a leading role

China's enterprise mergers and acquisitions continue to rise, and the manufacturing industry plays a leading role

China Construction machinery information

Guide: more and more facts show that mergers and acquisitions are increasingly becoming one of the themes of Chinese enterprises. Data released by PricewaterhouseCoopers recently showed that in the first half of 2007, China's M & A activities continued to heat up, and the number of announced transactions increased by 20% over the same period last year, from 674 to 808 in the same period last year

more and more facts show that mergers and acquisitions are increasingly becoming one of the themes of Chinese enterprises. Data released by PricewaterhouseCoopers recently showed that in the first half of 2007, China's M & A activities continued to heat up, and the number of announced transactions increased by 20% over the same period last year, from 674 transactions in the same period last year to 808 transactions, and the disclosed transaction amount reached US $27.6 billion. According to the data, the growth of M & a transaction amount in the first half of the year mainly came from the manufacturing industry and the real estate industry, reaching US $5billion and US $3.3 billion respectively, with nearly three times the growth compared with the manufacturing industry in the same period

this is also the result of industrial structure adjustment. " Liu jiejiao, deputy director of the industrial organization office of the Institute of industry and economics of the Chinese Academy of Social Sciences, analyzed the reasons for the growth rate of manufacturing mergers and acquisitions. He believed that this was related to the low concentration of China's manufacturing industry for a long time, "There are a large number of small and medium-sized enterprises in the manufacturing industry. At present, the situation they are facing is becoming more and more serious. Although the average size of enterprises in some industries is expanding, there are still a large number of small-scale enterprises. China has a very good foundation for mergers and acquisitions, and there are many target enterprises."

manufacturing industry leads the trend of mergers and acquisitions

due to the increase in the scale of key industries, the current demand for industrial integration is very strong, the regional integration of the iron and steel industry is ongoing, and the integration of the cement industry is more accurate than the import configuration, which has continued. "China is entering the era of mergers and acquisitions." BusinessWeek's assertion seems to be coming true

it is understood that in addition to the continuous increase in operating costs and the decline in profits, many small and medium-sized enterprises, especially the "double high" enterprises, cannot meet increasingly stringent environmental protection standards. The "opinions on implementing environmental protection policies and regulations to prevent credit risks" issued in mid July is tantamount to making things worse for them. Enterprises and projects that do not comply with industrial policies and environmental violations will be limited in loans. According to Liu jiejiao, "it is inevitable that some small and medium-sized enterprises with better qualifications will be merged by large enterprises under pressure."

Yi Shupeng, an analyst at Orient Gaosheng, told this newspaper that the reason why some capital was transferred to the manufacturing industry was that the current economic growth momentum was relatively strong, and it was expected that the capital liquidity would gradually decline. In addition, due to the relatively large fixed investment in the upstream resource industries, the manufacturing industry is needed to digest its output

strengthening the management of foreign mergers and acquisitions

contrary to the large growth rate of domestic mergers and acquisitions, foreign mergers and acquisitions tend to ease. According to the data recently released by Dealogic, an international financial information provider, in the first half of this year, global M & A transactions remained active and set a new record. The global M & a transaction volume increased by 55% over the same period in 2006, while "China's performance in the M & A market is only moderate", and the M & a transaction volume of private equity funds in China fell by 47% year-on-year

"foreign capital is interested in leading enterprises in China's industry, which has attracted the attention of the industry and the government." Zhaoyumin, director of the international market department of the Research Institute of the Ministry of Commerce, believes that the easing of foreign mergers and acquisitions has a certain relationship with the strengthening of government management and more rational domestic enterprises. "Domestic enterprises are more rational in their own value evaluation, and the government is more strict in the audit, resulting in an increase in the cycle of mergers and acquisitions."

Liu jiejiao believes that fluctuations in foreign mergers and acquisitions are normal. At the beginning of China's entry into WTO, many industries in China were forbidden to foreign investment, and foreign investors had established contact with the target enterprises during this period. After the liberalization, it is natural that foreign capital mergers and acquisitions peaked. "It is only to standardize the M & A procedures and strengthen the management and audit, rather than prohibiting the entry of foreign capital." He believes that the investment environment in China is very good now, and the enthusiasm of local governments to attract investment is also very high. It cannot be ruled out that the scale of foreign mergers and acquisitions may increase again in a certain period in the future

due to the promising prospects of China's economy, foreign mergers and acquisitions will not stop. Some people believe that foreign capital may continue to adopt the strategy of investing in larger M & A projects and acquiring minority stakes

The general trend of domestic mergers and acquisitions will form the strategy of large enterprises in recent years, which reflects the strong desire of domestic enterprises to strengthen industrial integration and do large-scale

"merger is a good low-cost way to expand the scale of enterprises. With the emergence of industry leaders, mergers and acquisitions are bound to occur." Liu jiejiao said. Industrial mergers and acquisitions can promote production. When the difference is beyond ± 2, the hardness tester must be revised and repaired or replaced with other hardness testing methods to transfer to industries with high productivity, so as to realize the adjustment and upgrading of industrial structure. The enterprise has obtained scale advantages, strong competitiveness and anti risk ability. For the manufacturing industry, the promotion and leadership of large enterprises will be conducive to the improvement of the level of domestic manufacturing, so as to enhance the competitiveness of Chinese industry

"domestic mergers and acquisitions have been relatively active in recent years, jumping one year ago." According to the current situation and the history of mergers and acquisitions in developed countries as shown, Liu jiejiao predicted that the upsurge of domestic enterprise mergers and acquisitions would probably occur in the next few years, and the general trend of enterprise mergers and acquisitions would take shape

this will also promote the overseas mergers and acquisitions of Chinese enterprises. Data show that overseas acquisition transactions have increased from 18 in the first half of last year to 31 in the first half of this year, with a year-on-year increase of 72%. Most overseas investments involve mining and metal industries. Li Bin, Deputy Secretary General of the global mergers and acquisitions research center, believes that the success of overseas mergers and acquisitions first requires enterprises to succeed in the domestic market. "Only by becoming a multinational company can they be able to successfully expand."

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