Chinese outbound M&A deals reached record levels in the first half of 2010, rising more than 50% over the same period last year, state media reported, citing a study carried out by PricewaterhouseCoopers. A total of 99 outbound deals were announced, 14 of them focused on natural resources. They included Sinopec’s (SNP.NYSE, 600028.SH, 0386.HK) US$4.7 billion acquisition of a 9% stake in Syncrude from ConocoPhilips (COP.NYSE) and China Investment Corp’s US$1.2 billion investment in PennWest Energy (PWE.NYSE, PWT.UN.TSX). Domestic and inbound deal-making activity increased 26%, with 1,884 transactions completed in the first half, up from last year’s three-year low. The largest deal was China Mobile’s (CHL.NYSE, 0941.HK) purchase of a 20% stake in Shanghai Pudong Development Bank (600000.SH) for US$5.8 billion. Foreign inbound M&A remains below pre-financial crisis levels, although it is rising once again.
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