Chinese Outbound M&A: Execution Risks and Consequences

Chinese outbound M&A activity reached an unprecedented level over the past twelve months. The total value of transactions announced in 2015 set a new record at over $110bn. By the start of June 2016, the 2015 record was already eclipsed. This growth has spanned the market, covering both long-term strategic outbound investments and take-private transactions which have the ultimate goal to re-list in China. Notwithstanding the valuations being offered, sellers and target boards continue to take a very cautious approach when receiving interest from a Chinese acquirer. This most recent issue of Weil’s Asia Alert examines some of the different approaches being taken to finance Chinese outbound M&A and some of the measures being used to address and allocate execution risks in this growing market.

View the alert.