With more than $16 billion in transactions in 2016, California was the leading recipient of Chinese capital in North America, reflecting Chinese interest in key sectors such as ICT, transport and infrastructure, entertainment and real estate.
ASSETS IN CALIFORNIA, KENTUCKY AND ILLINOIS WERE THE BIGGEST TARGETS IN NORTH AMERICA; ASSETS IN GERMANY, THE UK AND FINLAND TOPPED THE LIST IN EUROPE.
New York also continued to receive a large proportion of Chinese capital, with deal values totaling $5.3 billion. Commercial real estate transactions accounted for 90% of that value, including hotel portfolios and office towers such as 1221 Sixth Avenue and 1285 Avenue of the Americas.
Several US states attracted major investment from China for the first time, primarily because of large acquisitions of companies headquartered in those states. With $9 billion, Kentucky was the second-largest recipient of Chinese capital in North America, driven by Haier’s $5.6 billion acquisition of GE Appliances (consumer products) and Apex Technology’s $3.6 billion purchase of Lexmark (electronics).
Other top emerging states include Illinois (Anbang’s $5.5 billion acquisition of Strategic Hotels), Minnesota (HNA’s $2 billion purchase of Carlson Hotels) and Georgia (Wanda’s $1.1 billion acquisition of Carmike Cinemas).
circle5
GEOGRAPHIC HIGHLIGHTS IN NORTH AMERICA
Appendix A: Transaction Attractiveness Indicator
Appendix B: Country Forecasts
Appendix C: Methodology
M&A Transactions (US$B)
M&A Transactions (# Of Deals)
Domestic IPOs (US$M)
GEOGRAPHIC HIGHLIGHTS IN EUROPE
In 2016, Chinese transactions in Germany and the UK accounted for 46% of total investment in Europe. Chinese acquisitions in Germany rose nearly tenfold to $12.1 billion, up from $1.3 billion in 2015, driven by large acquisitions of German industrial machinery, real estate and infrastructure assets. Despite a drop in real estate acquisitions, the UK attracted $9 billion in Chinese investment, more than double the total investment in 2015 as Chinese buyers pursued ICT and entertainment assets.
Finland and Switzerland were also major investment destinations in 2016, attracting $7.6 billion and $4.8 billion respectively. Tencent’s $7.4 billion acquisition of gaming developer Supercell accounted for most of Chinese FDI in Finland. HNA’s purchases of Swissport ($2.8 billion) and Gategroup ($1.4 billion) drove deal values in Switzerland, which would have been by far the largest recipient of Chinese investment last year if ChemChina’s $43 billion takeover of Syngenta had not been delayed by pending regulatory approvals.
For the first time, Ireland became one of the top five European destinations for Chinese investment, with a total of $2.9 billion in transactions. This rise was driven by HNA’s $2.5 billion acquisition of Dublin aircraft leasing company Avolon and China General Nuclear’s $400 million acquisition of Irish wind farms.
The biggest declines in Chinese investment were in Italy (down 85% from 2015) and France (down 40%). The drops in 2016 were primarily because of large transactions in 2015 that spiked deal values that year, such as ChemChina’s $7.7 billion takeover of Italian tire maker Pirelli and Fosun’s $1.1 billion acquisition of French holiday company Club Med.
top-10-outbound-fdi-NA
TOP 10 RECIPIENT LOCATIONS OF CHINESE OUTBOUND FDI IN NORTH AMERICA (US$B)
Source: Rhodium Group
California and New York were leading recipients of Chinese investment.
TOP 10 RECIPIENT LOCATIONS OF CHINESE OUTBOUND FDI IN EUROPE (US$B)
top-10-outbound-fdi-EU
Source: Rhodium Group
Chinese transactions in Germany and the UK accounted for 46% of total investment in Europe.
top-arrow
#1
#2
#3
#4
#5
#6
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
INTRODUCTION
Baker-McKenzie-New-Logos
OUTLOOK FOR 2017
HOME
hamburger
HOME
INTRODUCTION
OUTLOOK FOR 2017
KEY TRENDS IN 2016
red-menu-arrow
CONTACT
KEY TRENDS IN 2016
red-menu-arrow-v1
x-toc
CONTACT
RETURN TO BAKERMCKENZIE.COM
white-banner-arrow-2