Uncertainties may slow outbound M&A activities

Chinese companies will likely continue to be a major driver of cross-border mergers and acquisitions this year, but their outbound investment activities may grow at a slower rate as a result of the rising number of political and economic uncertainties internationally, according to analysts.

In the first three quarters of 2016, China became the biggest acquiring nation in global cross-border M&A for the first time. Chinese companies completed 671 outbound M&A deals worth a total of $164.3 billion, nearly triple the amount during the same period in 2015, according to a recent report by the multinational accountancy firm PricewaterhouseCoopers.

The largest deal last year was the $43 billion acquisition of Syngenta, the Swiss pesticides and seeds group, by China National Chemical Corp, a State-owned chemicals giant.