Chinese companies, particularly those in the fields of electric vehicles (EVs) and consumer products, will increase mergers and acquisitions (M&As) activity in 2023 to boost scale and enhance profitability following the reopening of China’s economy, according to Bain & Company, reports the South China Morning Post.
A survey of 2,800 Chinese firms by Bain conducted in January this year and published last week shows that 80% of respondents are inclined to buy assets to chase further growth as their existing businesses cannot generate more profits, the global consultancy said.
“Facing difficulties in achieving organic growth, 80% of the business executives surveyed said their growth strategy would focus on M&As,” said Zhou Hao, head of Bain’s Greater China private equity and M&A practice. “China abounds with strong players in the new-energy vehicle industry, and we believe they will have more opportunities to conduct M&A deals [this year].”