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China to Curb Megadeals as Regulators Tame Record Overseas Spree

  • Overseas deals of at least $10 billion to be generally barred
  • Regulators to restrict large foreign property deals by SOEs
Bloomberg business news

Will China Stop Overseas M&As? Unlikely, Says Macdonald

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China is planning sweeping curbs on its companies’ overseas acquisitions, including barring most foreign investments of $10 billion or more, people with knowledge of the matter said, as it seeks to tame a record dealmaking spree that’s alarmed officials from Washington to Berlin.

The government will generally suspend several categories of deals while still leaving room for some strategic transactions to be executed, the people said, asking not to be identified because the information is private. It will restrict overseas investments of at least $1 billion in industries outside a buyer’s core business, as well as foreign property deals of $1 billion or more by state-owned enterprises, according to the people.