The value of China’s first-half M&A transactions fell to the lowest level since 2014 while the number of “megadeals” dropped by half with little hope for a quick rebound, PwC said in a report Wednesday, reports Nikkei Asia. While there were some 6,173 mergers and acquisitions in the first six months of this year, their value fell to $236.7 billion, a half-year low last seen in 2014.
Deals topping $1 billion totaled 22 transactions, below half the number in the previous six months, the consultancy said in its M&A 2022 midyear Review and Outlook. The biggest transactions were concentrated among state-owned enterprises with a focus on reforms, industrial upgrades, recapitalizations and integrating large SOE groups, the report said.
“There is little prospect of a significant rebound in the short term,” said David Brown, PwC deals leader for the Asia-Pacific region. “If some adverse factors—such as COVID, weak stock markets and regulatory and geopolitical concerns—can start to ease, investor confidence will gradually recover.”