The U.S., European and Japanese governments are intensifying their scrutiny of Chinese mergers and acquisitions, which are becoming a tool for the Asian superpower to acquire key technologies. They fear that allowing acquisitions of domestic companies that own cutting-edge technologies could impact the race for technological supremacy, as well as national security.

Overseas M&As by #Chinesecompanies from January to March totaled about $25.7bn, down roughly 70% from around $85.4bn two years earlier, the most recent period for which figures are available, according to Thomson Reuters. Over the same period, the figures for the U.S. and Europe each declined by 80% to 90%. In April alone, combined deals for the U.S. and Europe fell to about $200m, a sign that M&A bids by Chinese companies have been at a virtual standstill.


#GrowthStrategy #Mergers #DealMaking #Takeovers #Acquisitions #Europe #MergersandAcquisitions #UnitedStates #AmericanCompanies #China #EuropeanCompanies
Chinese M&A deals face wall as US and Europe guard tech
https://asia.nikkei.com/Politics/International-Relations/Chinese-M-A-deals-face-wall-as-US-and-Europe-guard-tech

#AkinwumiAdesina, who was in Beijing for the #ForumonChinaAfricaCooperation, denied the world’s second largest continent was caught in a debt trap brought on by Chinese spending on infrastructure. But he said #Africancountries should take ownership of deals when they are negotiating with China. #Adesina, who has been president of the development bank since 2015, said it was important for Beijing to understand how funds could be best spent and how risks could be managed in #Africa, especially if the government was encouraging #Chinesecompanies - not just contractors but also investors - to go there.

Adesina said #Africa needed infrastructure investment from China to help bridge a financial gap of between US$68bn and US$108bn a year for the continent to keep up a development pace similar to China’s decades ago, and to be competitive. Adesina rejected the claim that Beijing’s infrastructure drive had pushed African nations into a debt trap, saying the 37% debt-to-GDP ratio in Africa was 'well within the accepted norms', and that the investments would yield returns.


#GlobalEconomy #Economy #Geopolitics #ForeignPolicy #Diplomacy #Politics #BRI #InternationalRelations #ForeignRelations #EconomicRelations #EconomicCooperation #AfricanEconomies #AfricanContinent #AfricanDevelopment #BeltandRoad #FOCAC #ChinaAfrica #EconomicDevelopment
Chinese ‘will have to manage risks’ as investors pour more cash into Africa
https://www.scmp.com/news/china/diplomacy/article/2162947/chinese-will-have-manage-risks-investors-pour-more-cash-africa

The Berlin government is scrambling once again for ways to limit #Chineseinvestment in sensitive firms after it emerged that Beijing had acquired a significant stake in a German utility network through the back door. State-owned #China Southern Power Grid recently acquired a stake of more than 25% in the Luxembourg utility holding company Encevo, according to the Ardian private equity group. #Encevo’s Creos unit operates a 1,650-kilometer (1,025-mile) gas distribution network in western #Germany as well as a 420-kilometer high- and medium-voltage network.

The revised German law would also permit government review if an initial investment under 15% was followed by a subsequent acquisition that took the overall stake above 15%. But the powers of review would be strictly limited to firms linked to national security and the government would remain powerless regarding stakes less than 15%.


#Mergers #DealMaking #Takeovers #Acquisitions #MergersandAcquisitions #AmericanCompanies #ChineseCompanies #Regulators #Merger #Acquisition #China #Regulation #TechWar #ForeignInvestment
Berlin planning limits on Chinese investment
https://global.handelsblatt.com/politics/berlin-planning-limits-chinese-investment-952702

Berlin wants to lower the threshold for intervening in future investment and takeover bids by foreign firms. The new change would enable the German government to more easily review and possibly veto takeover bids of #Germancompanies that are deemed important for national security. According to German Economy Minister Peter Altmaier, moving the threshold was necessary in order to better protect businesses in sectors deemed 'sensitive.'

The proposal would primarily target Chinese investors, with officials concerned that a recent rise in Chinese takeovers would eventually drain #Germany's industries and lead to a loss of know-how in key, #hightech fields. Some experts are also critical of the suspected role the Chinese government plays in the decisions behind Chinese takeovers of foreign companies. Berlin showed it was willing to use its veto power to stop the takeover of German toolmaker Leifeld by the Chinese firm Yantai Taihai.


#Mergers #DealMaking #Takeovers #Acquisitions #MergersandAcquisitions #AmericanCompanies #ChineseCompanies #Regulators #Merger #Acquisition #China #Regulation #TechWar #ForeignInvestment
Germany prepares law for foreign takeovers
https://www.dw.com/en/germany-prepares-law-for-foreign-takeovers/a-44978142

The #CFIUS has the job of protecting US economic interests by preventing any takeover by foreign companies in cases where the takeover could have negative security consequences on the US. The Foreign Investment Risk Review Modernization Act of 2018 was rolled into the National Defense Authorization Act which had to be passed and was by Congress this week. The new act gives CFIUS new powers, more resources and staff, more oversite and also a mandate to massively increase its influence on any M&A process that involves foreign companies.


#Mergers #DealMaking #Takeovers #Acquisitions #MergersandAcquisitions #AmericanCompanies #ChineseCompanies #Regulators #Merger #Acquisition #China #Regulation #TechWar #ForeignInvestment
US increases power to regulate Chinese investment in the US
http://www.digitaljournal.com/tech-and-science/technology/us-increases-power-to-regulate-chinese-investment-in-the-us/article/528849

US President Donald #Trump is expected as early as this week to sign legislation to tighten the #US government's scrutiny of #foreigninvestments and exports of sensitive #technology. The law, which Congress passed in a rare show of unity among Republicans and Democrats, doesn't single out #China. But there's no doubt the intended target is Beijing. The Trump administration has accused China of using predatory tactics to steal American technology.

The new law strengthens reviews of foreign investment by the existing Committee on Foreign Investment in the United States, or #CFIUS, which is led by Treasury Secretary Steven Mnuchin. The committee can now review any investments that grant foreigners access to a US company's high-tech trade secrets. Before the change, such reviews were done only when a foreigner gained control of a company.


#Mergers #DealMaking #Takeovers #Acquisitions #MergersandAcquisitions #AmericanCompanies #ChineseCompanies #Regulators #MergerandAcquisition #Merger #Acquisition #Regulation #TechWar
New US slap against China: Tighter curbs on tech investment
https://www.stuff.co.nz/business/world/106093721/new-us-slap-against-china-tighter-curbs-on-tech-investment

Washington moved rapidly this past week to fend off the increasing transcendence of #China’s #techindustry, with Congress passing expanded #nationalsecurity controls over M&A transactions. The Committee on Foreign Investment in the United States ( #CFIUS) is charged with protecting #America’s economic interests by preventing takeovers of companies by foreign entities where the transaction could have deleterious national security consequences.

Through the Foreign Investment Risk Review Modernization Act of 2018, which was rolled into the must-pass National Defense Authorization Act and passed by Congress this week, CFIUS is gaining a number of new powers, more resources and staff, more oversight, and a charge to massively expand its influence in any M&A process involving foreign entities.


#Mergers #DealMaking #Takeovers #Acquisitions #Technology #MergersandAcquisitions #USCompanies #ChineseCompanies
Washington hit China hard on tech influence this week
https://techcrunch.com/2018/08/04/washington-hit-china-hard-on-tech-influence-this-week/

The total Chinese outbound M&As have increased since the beginning of last year, but deals in the US have shrunk as the dispute escalated between US President Donald #Trump and his Chinese counterpart #XiJinping over duties and security on investments. Total value of these global outbound M&As reached US$76bn in H1 of the year, up from US$53bn in the year-earlier period, according to data compiled by Thomson Reuters for Baker McKenzie.

But the value of US company buyouts, or 44 deals, fell to US$1.5bn during the first half of 2017, from US$7.5bn, bumping the #US down to #China’s eighth top target market from No 2 in early 2017. #UK was China’s top market with US$15.23bn at the time. None of the top five cross-border deals by value were of #UScompanies during H1 of 2018, as the Chinese targeted Europe, South America and Hong Kong.


#Mergers #DealMaking #Takeovers #Acquisitions #MergersandAcquisitions
Trade war shrinks #Chinesecompanies’ first-half mergers and acquisitions in America
https://www.scmp.com/business/companies/article/2156157/trade-war-shrinks-chinese-companies-first-half-mergers-and