Voice From China: COVID-19’s Impact on the M&A Market in China – Q1 2020


Source: Oaklins

Quarterly Update on the M&A Market in China

Latest indications suggest the Chinese government’s bold steps to contain COVID-19 have taken effect, with far fewer new cases reported daily. But what impact have these strong measures had on China’s economy? Angela Chen from Oaklins’ Shanghai office traces the contagion’s background and evolution and, with 80% of the country’s businesses back in operation and schools set to reopen soon, looks at the likely timescales for a reversal of the economic consequences.

We look not only at the potential impact on China’s GDP and M&A activity, and the policies announced by the government to alleviate pressures on businesses, but at the implications of the virus’ international spread for globalization.

Which industries have been affected most and which have benefited? We spotlight the medical consumables sector, where demand for protective clothing has boosted an already thriving market, analyzing the objectives driving these companies to engage in outbound acquisitions. This issue’s case study focuses on the acquisition by Zhende Medical Co., Ltd., one of the largest low-value medical consumables providers in China, of an equity stake in UK medical devices and consumables supplier Rocialle Healthcare from Berendsen Healthcare.

In addition, we list recent M&A transactions and break them down by sector and region, comparing inbound and outbound investments. 

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