The Emergence Of Cross-Border Mergers And Acquisitions Of Private Enterprises

In the first quarter of the year, China's CRO enterprises acquired similar foreign companies. In the first quarter of this year, 10 cross-border mergers and acquisitions occurred in China's M & a market, of which 5 of the total amount was $253 million, compared with the same period last year.

But it is worth mentioning that in the quarter, domestic private enterprises played a major role in cross-border acquisitions. For example, Wuxi pharmaceutical company bought A ppTec laboratory service company in the United States, and AOKANG Group acquired Italy famous shoe maker Wanli Wei.

Today, Greater China venture capital and private equity research consultant and investment institution Chunke group today released the first quarter of 2008 China M & A Market Research Report.

In the research area of the Qing Research Center, in the first quarter of 2008, the total number of mergers and acquisitions in the three industries of TM T (technology, media, telecommunications), biotechnology and health and energy was 29, and 23 mergers and acquisitions revealed the amount and the total amount of mergers and acquisitions disclosed amounted to US $1 billion 927 million.

The report points out some striking features of China's M & a market in the first 2008 quarter.

First, the total amount of cross-border mergers and acquisitions decreased significantly, a decrease of 75.6% over the same period last year.

In the first quarter of this year, cross-border mergers and acquisitions in the Chinese market showed a marked decline after the cross-border mergers and acquisitions rose to a record high at the end of last year.

There were only 10 cross-border mergers and acquisitions in the Chinese market this year, of which 5 were about 253 million US dollars in the disclosure price event, which is 75.6% lower than that in the same period last year.

In addition, the average scale of M & A events this quarter is only 50 million 628 thousand US dollars, down 51.2% from the same period last year.

According to the observation of the Qing Research Center, the cross-border mergers and acquisitions in this quarter have seen a marked decline. The main reason is that there are no M & A events of more than 20% acquired by large state-owned enterprises.

Secondly, the impact of the US subprime debt crisis has not yet been released, resulting in the financing channel is still not smooth, coupled with the tightening of domestic related industry regulation, to a certain extent, restricts foreign capital to launch large-scale mergers and acquisitions of domestic enterprises.

In addition, some major cross-border M & A events are still in the pipeline and are expected to emerge in the next few quarters.

The two is the strong momentum of M & A in TM T industry, and the energy, biotechnology and health industries remain active.

From the statistics of Qing Ke, we can see that foreign capital's acquisition of domestic companies and assets is dominant in the first quarter.

8 of the 10 cross-border mergers and acquisitions in the first quarter were foreign acquisitions of domestic companies and assets.

In the first quarter, the TM T industry was very active. There were 18 mergers and acquisitions events, of which 13 cases were disclosed in the total amount of about 961 million US dollars, with an average size of US $73 million 936 thousand and 900.

The M & A activities in biotechnology and health industry in this quarter are also active. There are 5 mergers and acquisitions events, of which 4 have disclosed M & A amount, amounting to 166 million US dollars, with an average size of US $41 million 488 thousand and 500. In the 5 M & A events that took place, Wuxi Pharma's A ppTec Lab o RA to ry Se RV ice s s is the first domestic company in China.

Compared with the above two industries, there are 6 M & A events in the energy industry. The total amount of disclosure is 800 million US dollars, the average size is three in the three industries, reaching 133 million US dollars.

Three, the number of VC and PE related mergers and acquisitions declined and the scale was relatively small.

In the study area of Qing Ke, there were 5 mergers and acquisitions related to VC and PE in the first quarter of 2008, a decrease of 50% compared with the same period last year.

(18A1)