PwC Capital Markets Flash

Volume 5 – Issue 1

In Focus – Considering M&A in China

Despite uncertainty in the media about the current state of affairs in China, there have been a number of high profile Canadian-led acquisitions there. The In-Focus section of our first Capital Markets Flash of this season considers this question: have Canadian dealmakers overreached in China? Our findings suggest they have not.

Facts highlighted in the report include:

Canadian entities have announced $1.42 billion worth of acquisitions in China over the last nine months, a 158% increase over annual 2010 dollars volumes.
By deal value, Canadian dealmakers continue to be outpaced by their US counterparts, who have announced $4.7 billion in China-bound acquisitions year-to-date.
During the last decade, Chinese entities have been significantly more acquisitive in Canada than vice-versa. In fact, at the height of the global M&A boom in 2007, the value of Chinese acquisitions in Canada was nearly 28 times the value of Canadian acquisitions in China.

Please download In Focus or the full report to read our detailed analysis: