The drive to invest in overseas coupled with initiatives that the Chinese authorities have been taking to help facilitate cross-border activity, have created a credible environment for outbound M&A activity originating from China.
Hong Kong is an existing gateway for Chinese companies to undertake M&A overseas. The combination of potential target companies with strong growth prospects and attractive valuation levels makes the pool of UK-listed and private companies an appealing proposition for investors looking to build on their existing businesses or use the acquisitions as a platform for future bolt-ons. The UK has one of the most open regimes to M&A with a stable regulatory and political environment, which is why it sees a significant proportion of transactions involving overseas buyers.
Read the full article from Grant Thornton here.