Chinese investors’ largest targets were real estate ($17.4 billion); transport, utilities and infrastructure ($6 billion); consumer products and services ($5.7 billion); and entertainment ($4.8 billion). Together these industries accounted for nearly 70% of Chinese investment in the region.
IN NORTH AMERICA, CHINESE INVESTORS TARGETED REAL ESTATE, TRANSPORT AND CONSUMER PRODUCTS; IN EUROPE, THEY PURSUED INFORMATION TECHNOLOGY, INFRASTRUCTURE AND INDUSTRIAL ASSETS.
Chinese investment in electronics ($4.3 billion) also rose sharply, primarily because of Apex Technology’s $3.6 billion purchase of computer printer maker Lexmark — the largest US electronics acquisition by a Chinese company to date.
With total deal value of $1 billion, Chinese M&A activity in the health and biotechnology sector had another record year, compounding the rapid growth of Chinese investment in the industry since 2014.
The biggest drops in Chinese investment were in energy ($600 million compared to $1.9 billion in 2015), a reflection of China’s shift away from the large commodities deals that dominated Chinese outbound investment from 2008 to 2013, and financial services ($1.9 billion compared to $3 billion in 2015). Although Chinese interest in the financial sector remains healthy, no large transactions closed in 2016.
North America far surpassed Europe in attracting Chinese real estate investment, driven by several large hotel acquisitions, including Anbang’s $5.5 billion purchase of Strategic Hotels, HNA Group’s $2 billion acquisition of Carlson Hotels and China Life Insurance’s $2 billion investment in a Starwood select-service hotel portfolio. China’s outbound travel boom has fueled Chinese acquisitions of hotel and travel businesses, while US commercial real estate has become a popular safe haven for Chinese investors seeking diversification.
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TOP INDUSTRIES TARGETED BY CHINESE INVESTORS IN NORTH AMERICA (US$B)
Source: Rhodium Group
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North America also remained slightly ahead in consumer products (Haier’s $5.6 billion acquisition of GE Appliances) and entertainment (Wanda’s $3.5 billion purchase of Legendary, a top Hollywood movie production company), a reflection of the US’s strength in these sectors.
INDUSTRY HIGHLIGHTS IN NORTH AMERICA
Appendix A: Transaction Attractiveness Indicator
Appendix B: Country Forecasts
Appendix C: Methodology
M&A Transactions (US$B)
M&A Transactions (# Of Deals)
Domestic IPOs (US$M)
INDUSTRY HIGHLIGHTS IN EUROPE
Chinese investors’ largest targets were real estate ($17.4 billion); transport, utilities and infrastructure ($6 billion); consumer products and services ($5.7 billion); and entertainment ($4.8 billion). Together these industries accounted for nearly 70% of Chinese investment in the region.
Chinese investment in electronics ($4.3 billion) also rose sharply, primarily because of Apex Technology’s $3.6 billion purchase of computer printer maker Lexmark — the largest US electronics acquisition by a Chinese company to date.
With total deal value of $1 billion, Chinese M&A activity in the health and biotechnology sector had another record year, compounding the rapid growth of Chinese investment in the industry since 2014.
The biggest drops in Chinese investment were in energy ($600 million compared to $1.9 billion in 2015), a reflection of China’s shift away from the large commodities deals that dominated Chinese outbound investment from 2008 to 2013, and financial services ($1.9 billion compared to $3 billion in 2015). Although Chinese interest in the financial sector remains healthy, no large transactions closed in 2016.
North America far surpassed Europe in attracting Chinese real estate investment, driven by several large hotel acquisitions, including Anbang’s $5.5 billion purchase of Strategic Hotels, HNA Group’s $2 billion acquisition of Carlson Hotels and China Life Insurance’s $2 billion investment in a Starwood select-service hotel portfolio. China’s outbound travel boom has fueled Chinese acquisitions of hotel and travel businesses, while US commercial real estate has become a popular safe haven for Chinese investors seeking diversification.
North America also remained slightly ahead in consumer products (Haier’s $5.6 billion acquisition of GE Appliances) and entertainment (Wanda’s $3.5 billion purchase of Legendary, a top Hollywood movie production company), a reflection of the US’s strength in these sectors.
TOP INDUSTRIES TARGETED BY CHINESE INVESTORS IN EUROPE (US$B)
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Source: Rhodium Group
Agriculture and Food
chart-agriculture-and-food
Source: Rhodium Group
CHINESE FDI TRANSACTIONS IN NORTH AMERICA AND EUROPE BY INDUSTRY (US$B) 2011-2016
Automotive
chart-automotive
Aviation
Basic Materials
chart-aviationchart-basic-materials
Consumer Products and Services
Electronics
chart-consumer-products-and-serviceschart-electronics
Energy and Power Generation
Entertainment
chart-enerty-and-power-generationchart-entertainment
Financial and Business Services
Health and Biotechnology
chart-financial-and-business-serviceschart-health-and-biotechnology
Information and Communications Technology
Industrial Machinery and Equipment
chart-information-and-communications-technology.pnchart-industrial-machinery-and-equipment
Real Estate and Hospitality
Metals and Minerals
chart-real-estate-and-hospitalitychart-metals-and-minerals
Transport, Utilities and Infrastructure
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NORTH AMERICA
EUROPE
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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
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