Chinese investment in North America and Europe would have been even higher in 2016 if not for a significant rise in aborted transactions, which jumped to a record 30 deals worth $74 billion. By comparison, 23 transactions worth $7.9 billion were canceled in 2015 and 13 deals worth $2 billion were canceled in 2014.
THE NUMBER OF CANCELED AND WITHDRAWN TRANSACTIONS ROSE AMID NEW CHINESE MEASURES TO SLOW CAPITAL OUTFLOWS AND HEIGHTENED US AND EU SCRUTINY.
In Europe, Chinese investors canceled or withdrew 20 deals worth $16.3 billion. In North America, Chinese investors walked away from 10 deals worth $59 billion.
Although the rise in canceled transactions can be partially attributed to a much higher volume of announced transactions in 2015 and 2016 as well as purely commercial reasons, greater regulatory and political scrutiny in China, North America and Europe also contributed to the increase.
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“While CFIUS has been consistent in its approach, the volume and nature of the deals have produced more challenging transactions, with US officials coordinating with counterparts in other advanced economies.” ROD HUNTER, Policy and regulatory partner in Baker McKenzie’s Washington, DC office
Appendix A: Transaction Attractiveness Indicator
Appendix B: Country Forecasts
Appendix C: Methodology
M&A Transactions (US$B)
M&A Transactions (# Of Deals)
Domestic IPOs (US$M)
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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The number of canceled and withdrawn transactions rose
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