China's track record in M&A

Chinese companies increased their acquisitions of foreign ones (and of foreign resources) tenfold from 2003 to 2007. They are in a good position to quicken that pace in coming years.
Chinese companies have diverse motives for acquiring foreign ones; increasingly, deals are no longer focused on acquiring raw materials and natural resources. Rather, the goal is to acquire strategic assets across a broad swath of industries and geographies.
A collection of exhibits outlines the progress of outbound Chinese M&A, the sources of capital, and the success of Chinese deals so far.

Exhibit 1: Acquisitions by Chinese companies of assets outside their home country is a relatively new phenomenon, but one that is growing quickly.
Exhibit 2: China’s companies are acquiring businesses in many industries and geographies.
Exhibit 3: Many deals are done for reasons other than creating value for shareholders.
Exhibit 4: Chinese companies overpay for most acquisitions, only some of which create value.
Exhibit 5: A majority of the Chinese companies pursuing cross-border deals are publicly traded state-owned enterprises that used to be wholly state owned.