Learning curve

Author: | Published: 27 Mar 2018

IFLR’s 2018 Asia M&A forum highlighted issues of shareholder activism, outbound M&A and antitrust risks

A guide to Chinese capital controls and the future of outbound M&A In 2017, outbound deal activity dropped by 40% in H1, 10% in H2, and 30% overall year-on-year. Technology, advanced manufacturing, renewables and natural resources continue to be strong sectors - Belt and Road initiative projects are also encouraged but buyers need to ensure they stay within their core business. New outbound investment rules started March 1: capital controls previously focused on onshore financing/guarantee but new rules focus on monitoring vehicles. The US Foreign Investment Risk Review Modernization Act 2017 poses a threat to deal activity with an increased review period of up to 45 days, and mandatory filings for the acquisition of a 25% share or more of voting interest in a US business by a foreign entity. Cfius has broadened the application...