Others News
- Nation to play catch-up in M&A
Date: 7-Dec-2007 Sources: (Shenzhen Daily)
A GROWING appetite for mergers and acquisitions (M&As) and asset purchases will help China rapidly play catch-up with developed markets in M&A, according to a survey by Duke University and the CFO Magazine.
The survey, released Thursday, collected responses from 1,275 chief financial officers, including 573 from the United States, 308 from China, 203 from the rest of Asia and 191 from Europe.
Thirty-seven percent of Chinese firms polled plan to acquire other firms or purchase assets over the next year, according to the survey.
That compares with 40 percent of U.S. firms, 47 percent of European firms and 42 percent of Asian firms outside of China. Nineteen percent of the Chinese firms surveyed said they plan to sell all or part of their own firms.
At least some Chinese firms will be avoiding U.S. shopping sprees: 16 percent say they are much less interested in acquiring U.S. firms because of the political obstacles that thwarted previous attempts, such as the failed 2005 bid of Chinese oil firm CNOOC Ltd. for Unocal Corp.
Sixty-one percent of Chinese firms said that a U.S. economic recession would hurt their firms, but only 9 percent said it would significantly hurt business.
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