Chinese companies’ cross-border M&A rising
From 2008 to 2011, Chinese companies’ outward foreign direct investment in the form ofM&As totalled $106.3 billion, representing an annualized growth of 44 percent, Chen Runyun,an official from the MOC’s department of outward investment and economic cooperation, saidat a news briefing in Beijing.
In 2011 alone, OFDI in the form of M&As amounted to $27.2 billion, accounting for 37 percentof the total OFDI that year, Chen said.
In a recent case, the China National Offshore Oil Corporation was given approval by theCanadian government earlier this month to buy Calgary-based oil and gas producer NexenInc. for $15.1 billion.
Once completed, the takeover will be China’s largest overseas acquisition.
Despite robust activity overseas, Chen said Chinese companies’ overseas investment, whichaccounts for just 2 percent of the global flow, has encountered a string of obstacles, includinga lack of operation experience, weak risk controls and frequent safety accidents.
Chen said the ministry will work to improve policy support to facilitate Chinese companies’overseas expansion.