M&A in China hit US$308B in 2012

Growth of merger and acquisitions deal values in China reaches a 6-year high, with Internet sector the second largest contributor.

The growth in deal value of mergers and acquisitions (M&A) in China reached a 6-year high in 2012 with deals totalling US$307.8 billion, said a local research firm.

A ChinaVenture report Sunday said M&A deal value in China grew 37 percent year-on-year in 2012, a 6-year high. This is despite the number of deals decreasing 23 percent year-on-year to 3,555 in 2012, it noted.

ChinaVenture attributed the growth in M&A deals to overall downturn in markets overseas and the increasing willingness of Chinese companies to be acquired.

Total value of deals in the Internet sector was the second highest at US$14 billion, after the energy and mining sector which raked in US$33.5 billion. Following the Internet sector was the financial sector and the manufacturing sector with US$13.7 billion and US$13.6 billion in deals.

The report noted the number of completed deals reached 2,458 in 2012. Deals with discolved value were at 2,098 at a total value of US$127.4 billion. Cross-border deals were valued at US$36.6 billion, making up 29 percent of total completed transactions.

ChinaVenture highlighted Alibaba Group's buying back 21 percent stake at US$7.1 billion from Yahoo and Alibaba's privatization bid as two of the major completed deals.

It added examples of high profile deals included Baidu's acquisition of Qunar.com, the merger between Youku and Tudou and Wal-Mart investing in Yihaodian .

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