The combined value of completed Chinese FDI transactions in both regions totaled more than $94.2 billion, up 130% from the previous benchmark of $41 billion in 2015. A growing appetite for cutting-edge technology, consumer brands and safe haven assets in advanced economies drove this huge rise as Chinese companies sought to diversify out of their slowing home market.
CHINESE DIRECT INVESTMENT IN NORTH AMERICA AND EUROPE MORE THAN DOUBLED IN 2016.
Acquisitions fueled the increase, accounting for 97% of total investment in 2016. Greenfield investment in offices, warehouses, manufacturing operations and R&D facilities comprised 3% of total investment, down from an average of 10% in the past five years.
The total number of completed deals remained flat at 330 transactions, with 155 deals in North America and 175 in Europe. By comparison, Chinese investors closed 347 deals in 2015 (186 in North America and 161 in Europe) and 363 deals in 2014 (184 in North America and 179 in Europe).
The average deal value of Chinese investment in both regions more than doubled to $290 million, up from $120 million in 2015. The average deal size in North America was $310 million (up from $90 million in 2015), compared to $260 million in Europe (up from $150 million in 2015).
Chinese FDI would have been even higher if not for a significant rise in canceled, withdrawn or delayed transactions, such as ChemChina’s $43 billion acquisition of Swiss agribusiness giant Syngenta, which was put on hold because of pending antitrust reviews in multiple jurisdictions. In 2016, 30 deals worth $74 billion were canceled (10 in the US and 20 in Europe).
chinese-fdi
TOTAL VALUE OF CHINESE FDI TRANSACTIONS IN NORTH AMERICA AND EUROPE
Source: Rhodium Group. Data represents the combined value of direct investment transactions by Mainland Chinese companies, including greenfield projects and acquisitions that result in significant ownership control (>10% of equity). Europe includes the EU-28 and the European Free Trade Association (EFTA) countries: Iceland, Liechtenstein, Norway, and Switzerland. North America includes the United States and Canada.
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Chinese direct investment in North America and Europe more than doubled
North America took the lead as the top target market by deal value
Chinese investors target different assets in North America and Europe
Privately-owned Chinese companies drove acquisitions
Chinese investors continue to target assets in key jurisdictions in both regions
The number of canceled and withdrawn transactions rose
Appendix A: Transaction Attractiveness Indicator
Appendix B: Country Forecasts
Appendix C: Methodology
M&A Transactions (US$B)
M&A Transactions (# Of Deals)
Domestic IPOs (US$M)
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