Tuesday, March 22, 2016

China Buys U.S. Firms at Record Rate

From January 2000 to the end of 2015 China closed 1,200 merger and acquisition deals in the United States worth a combined total of $63.3 billion. Already this year, announcements have been made of Chinese intentions to purchase Hollywood’s Legendary Entertainment Group for $3.5 billion, large construction equipment manufacturer Terex Corporation for $5.4 billion, General Electric’s appliance division Haier for $5.4 billion, Fortune 500 company Ingram Micro for $6.3 billion, and what would be the largest acquisition of a U.S. firm by a Chinese company to date, Starwood Hotels & Resorts for $14.3 billion.
It would seem that the way to overtake a country may not be with planes, guns, and bombs, but rather with the almighty dollar.

Another interesting announcement came earlier this year when China's Chongqing Casin Enterprise Group signed an agreement to purchase the Chicago Stock Exchange, a deal expected to close later this year. While a smaller purchase — one that values the Exchange at slightly less than $100 million — it signifies China's goal of inserting itself into every aspect of American busines, and will give even greater influence to Chinese intentions.  

No comments: