Deals
China’s Overseas M&A Spree Comes at Lowest Costs Since 2012
- Chinese firms announce record $157 billion of outbound deals
- Outbound acquisitions cost 30% less than domestic purchases
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As Chinese companies go on a record $157 billion overseas buying binge, they’re collecting their corporate trophies at the cheapest levels in four years.
The median price they’re paying this year amounts to 14 times the Ebitda -- or earnings before interest, taxes, depreciation and amortization -- of the target companies, down from a multiple of 16 in 2015, according to data compiled by Bloomberg. That’s a 30 percent discount to domestic mergers and acquisitions.