As the Year of the Goat draws to a close, China butts its way in to the headlines with some very noteworthy deals!

The Chinese Year of the Goat is drawing to a close, with the Year of the Monkey starting on February 8th. The last couple of weeks have seen Chinese companies butting their way on to the front of the world’s financial press with some pretty impressive takeover bids for foreign entities.

Zephyr data shows that since the beginning of 2016, Chinese acquirors have announced cross border deals totalling just over USD 60bn. Given that the total annual value of cross border deals involving Chinese acquirors for 2015 was USD 64bn, previously the highest figure ever recorded, this by any country’s standards is a very impressive start to the Gregorian calendar year!  ChemChina’s USD 43.8bn acquisition of Syngenta of Switzerland, formally announced a couple of days ago, but speculated about since November of 2015, is not just the largest so far in 2016, but is China’s biggest cross border M&A transaction ever by a long way.

China’s biggest deal previously, was 2014’s USD 7bn acquisition of Xstrata Peru by MMG, the mining conglomerate with the backing of a number of financial investors. When looking at where Chinese companies have been looking for acquisition targets, there would appear to be real diversity across continents and industries proving that it is the individual company which is the asset and what the value of that asset brings to the long term strategy of the acquiror.