China’s M&As recover to record $260 bln in 2013

The value of mergers and acquisitions in China hit a record last year after recovering from a five-year low, driven by a surge of activities in the second half, a report said yesterday.

The value of total M&A deals, including domestic, inbound and outbound, reached $260 billion last year, up 28 percent from the figure in 2012 which was a five-year low.

There were 4,448 M&A deals last year, with 59 percent in the second half, PricewaterhouseCoopers said.

"Strong M&A activity shows a return of market confidence, and we expect these strong growth trends to continue into the first half of 2014," said Roger Liu, a PwC partner.

Domestic M&A deals powered the market recovery last year as the total value amounted to $148.1 billion, up from $89.6 billion in 2012.

More M&A activities are expected across resources and industrial sectors because of the stepped-up efforts to reform state-owned companies, PwC said in the report.

"The key drivers to fuel M&A growth will include further liberalization of markets, state-owned enterprise reforms, government support for outbound activities, and recovering equity capital markets," Liu said.

Outbound M&As slowed to $51.5 billion from a record $66.4 billion in 2012 when CNOOC made a $15 billion acquisition. There was a record 119 deals in the second half of last year.