Reports 2023 Q1 - China M&A Financial & Legal Advisory

 Mergers & acquisitions (M&A) involving China totaled US$72.2 billion in the first quarter of 2023, down 12.4% compared to last year, or down 38.7% from the previous quarter. Number of announced deals totaled 954, decreasing 14.2% compared with the same period of 2022, or decreasing 34.2% from the previous quarter.  

Chinese outbound acquisitions totaled US$1.9 billion, down 44% compared to the same period of 2022. Chinese acquisitions along Belt & Road nations saw 36 deals worth US$0.6 billion, down 4.3% compared with the same period of 2022, and accounted for 29.7% of the total Chinese outbound acquisitions. Foreign firms acquiring Chinese companies amounted to US$20.8 billion, a 113.1% increase from the same period of 2022. Domestic activity stood at US$47.9 billion, a 25.9% decrease compared with the same period of 2022.  

Deal making activity involving China targeted the Industrials sector which captured 25.8% market share and totaled US$18.6 billion, a 37.8% increase compared with the same period of 2022. Materials were in the second place with the market share of 20.8%, up 77.7% compared with the same period of 2022. Real Estate followed in the third place with 10.8% market share which was US$7.8 billion, a 24.3% decrease compared with the same period of 2022. L Catterton Asia Acquisition Corp agreed to acquire the entire share capital of Lotus Technology I c’ assets for US$5.4 billion in cash. The deal was the biggest China M&A transaction in first quarter of 2023. 

Deutsche Bank led the Any Chinese Involvement Announced M&A league table in first quarter of 2023, with 7.5% market share and US$5.4 billion in related deal value. Morgan Stanley was followed in the second place, with the market shares of 5%. Huatai Securities Co Ltd was in the third place, with the market shares of 4.8%. ICBC, China International Capital Co and CITIC were ranked in top three in number of deals. 

Fangda Partners, Skadden and Kirkland & Ellis were ranked top three in the Any Chinese Involvement Announced M&A league table in first quarter of 2023 in related deal values. Fangda Partners, AllBright Law Offices and Grandway Law Offices were in the top three in number of deals.









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