Deals
Chinese M&A Scrutiny Helped Void Up to $75 Billion in Deals
- Up to a third of outbound deals blocked, withdrawn in 2016
- Local and Chinese regulators cautious as deal volume rises
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Chinese acquirers are seeing a large number of cross-border deals blocked at home and abroad as a sharp increase in volume makes regulators on both sides of transactions more cautious, Linklaters LLP said in a report Monday.
Of the $220 billion deals announced by Chinese acquirers, $40 billion to $75 billion -- or as much as a third of those potential transactions -- were canceled or withdrawn last year, according to the report, citing analyst commentary and press reports. Many were scuppered over concerns relating to national security or interest.