China Merger & Acquisition Report Q2 2009

【Publication Date】
09-08-15
【Delivery Format】
Soft Copy
【Pages】125
【Charts】46
【Price】150USD
【Chinese Version】
1000RMB
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The China Merger & Acquisition Report Q2 2009 is one of a series of reports recently published by Zero2IPO Research Center. According to the report, a total of 55 M&A deals were closed on China’s M&A market, including 47 which disclosed a combine value of US$5.82B.  The report offers a comprehensive analysis of M&As in the TMT, Energy, and Bio/Healthcare industries, cross-border M&As and VC/PE-related M&As. It also explores hot issues on China’s M&A market during Q2’09, providing an objective market forecast for Q3’09. The report, which consists of seven chapters, gives an in-depth analysis of China’s M&A market during Q2’09 in terms of market review, statistics, case collection, special subject study and market outlook. The special study focuses on the topic of “VC/PE Opportunity in China’s Foreign Languages Training Industry”. It begins with a case study of British Pearson Group’s takeover of Wall Street English (China). It then goes on to analyze the historical development and current investment in the industry, and explores future VC/PE opportunities to offer fresh insight for professional training institutions.

I. Mega-value Cross-border M&As Frequent; Overseas Acquisitions Dominate

A total of 13 cross-border M&A deals were completed in Q2’09 on Chinese market, and 10 of them disclosed a total of US$4.31B. Compared with the same period last, the number of cross-border M&A deals fell 40.9%, but the total M&A value rose a staggering 178.5%. This was largely contributed by the mega-value overseas acquisitions carried out by Chinese companies like PetroChina Co., Ltd (PetroChina) and China Minmetals Corporation (China Minmetal), which pushed up the average M&A value of cross-border deals.

II. TMT M&As Cool Down; Energy M&As Red-hot

In Q2’09, 25 M&A deals were closed in TMT, Energy and Bio/healthcare sectors on which Zero2IPO Research Center has focused, including 22 deals disclosing a total value of US$3.30M. To be specific, TMT saw 14 deals, of which 11 disclosed a combined value of US$424.06M. Energy sector had seven deals involving a total value of US$2.76B. Bio/healthcare also reported four deals, disclosing a total value of US$113.71M.

III. VC/PE-related M&As Heat up, though of Small Scale on Average

Within the research scope of Zero2IPO Research Center, ten VC/PE-related M&A deals were closed in Q2’09, eight of which disclosed a total value of US$235.66M. Six of the deals occurred in Broad IT industry, two in Traditional and another two in Bio/Healthcare sector. The number of deals increased 66.7%, but the total value decreased 34.8% because the average scale hit the lowest level in a year.

Note: The research scope of Zero2IPO Research Center refers to:
a. Of the two parties involved in M&A deals which the research report focuses on, one must be a Chinese mainland company;
b. M&A deals mentioned in this report refer to those which involve the acquisition of a 20.0% stake or more.
c. The report covers the following fields:
◆ Cross-border M&As (between Chinese mainland companies and foreign companies)
◆ M&As between VC/PE-backed enterprises and other enterprises
◆ M&As in TMT industry
◆ M&As in Energy industry
◆ M&As in Bio/Healthcare industry

Mergers (including mergers and consolidations) and Acquisitions of the above-mentioned types, common enterprises conducting these activities and the institutional environment all fall within the range of research objects. But the investment and buyout activities carried out by VC and PE funds are not included in our research scope.