Medical network, June 9, after the 2008 financial crisis, Chinese enterprises' overseas mergers and acquisitions began to sprout, 2011 ~ 2013 began to rise, in recent years, the number of cross-border mergers and acquisitions increase obviously. In the past, China's cross-border investment has focused on resources and energy, and health care has become a hot area for overseas acquisitions. Chinese companies accounted for 4.6 per cent of cross-border m&a transactions in healthcare in 2016. 

 

China's cross-border m&a rankings for healthcare in 2016 

 

 

 

Note: the top 100 list only announced the date of the transaction announced in 2016, and disclosed the investment and acquisition deals of the transaction volume. 

 

Go out to sea 

 

Chinese pharmaceutical enterprises to carry out cross-border m&a action more and more frequent, and heighten the international brand, the introduction of high-quality brand, in the aggregate, and advanced technology, the demand such as market value of listed company growth. 

 

One of the biggest cross-border deals of all year was in the China resources group. Announced in July 2016, China resources and Australia's Macquarie capital of the joint venture company, for $1.278 billion acquisition of Australia's largest tumor radiotherapy and heart disease treatment services company GenesisCare stake, become China resources in Asia, and accelerate the development of strategic part of China. 

 

Shanghai is adding to the expansion of its blood products business through overseas acquisitions. In August 2016, Shanghai's controlling shareholder, alex's kori day cheng and China through its holding alex's day cheng international investment company, about $1.2 billion in cash to buy the 100% stake in the BPL blood products company. BPL plasma suppliers, is the world's largest third party in the United States has 39 slurry station, in London, United Kingdom, there are 1 blood products factory, a total of 13 varieties, 22 specifications of blood products. The BPL's advantage also lies in the expanding global distribution network, which has been registered in 48 countries or territories and sold in 44 countries. BPL company 2016 annual sales income of about $396 million (about 2.69 billion yuan), the growth of about 22% in 2015, Shanghai in 2015 and 2015, alex's revenue of 2.013 billion yuan and 2.326 billion yuan respectively, acquisition of BPL will drive Shanghai alex and the ascension of the controlling shareholder of the blood products business, and help to expand in overseas markets. 

 

The focus on blood is still new in nanjing. After nanjing's new 100 acquisition of the Chinese umbilical cord blood bank, it is expected to become the world's largest umbilical cord blood bank. Professional personage analysis, nanjing new balance as the world's largest after umbilical cord blood bank, will be overweight cord blood hematopoietic stem cell collection, storage, clinical research and development, the application of the whole industry chain business, wide prospect of market. 

 

Fosun medicine as one of pioneers overseas m&a boom, although the pace of mergers and acquisitions in 2016 seems to be slow, but its 2016 acquisition of India Gland Phanma company about 86.08% of the equity, drug firms in the 2016 years the amount of mergers and acquisitions at sea most. Fosun has said, with the aid of Gland Pharma in 36 global markets such as Europe and the United States registered ability, product research and development ability and manufacturing ability, will promote the innovation in the fosun medicine research and development ability and the expansion of the Indian market, improve injection in European and American mainstream market share. Although fosun medicine only ranked list 4, but hurun report assessment as "the most unique vision" active buyers, because the company has begun to focus on emerging markets. In addition to buy Rio Bravo, Brazil's second-largest independent asset management investment group to strengthen the regional investment ability, in the second half of 2016, sell some of its before buying overseas assets reflected "buy sell" mature way to trade, etc., reflecting the fosun medicine in overseas mergers and acquisitions has become increasingly skilled operation. 

 

In late May 2016, human medicine bought Epic Pharma, LLC, for $529 million. The acquisition will help expand the global market for the pharmaceutical industry, which is known for its pharmaceutical and narcotic drugs. Epic Pharma company predecessor is novartis SANDOZ plant in the United States, with the control class drug production qualification, and owns more than 30 at the different stage of research and development projects, products in development is given priority to with narcotic analgesics, research and development products are mainly concentrated in the narcotic analgesia, nerve, niche such as high blood pressure. When the acquisition is completed, Epic Pharma will form a synergy with the us company puck, which is controlled by human health, helping to improve the market position of generic drugs in the us. 

 

In addition to the overseas acquisitions of pharmaceutical companies involved in health care, and the acquisition of cross-border acquisitions such as Kerr Investment Holding, a Canadian company. Kerr Investment Holding is sports nutrition and diet food producers, in Canada, the United States such as North America with a large retail and distribution network, the king of the west through acquisitions in sports nutrition and health care products market, the Kerr Investment Holding introduced to China, and west of the king of the original business integration, speed up the marketing. 

 

Vc institutions also begin to pay close attention to health care in the field of cross-border mergers and acquisitions, 10 cross-border mergers and acquisitions in the field of medicine and health, has the investment community in XinChan shoot, China jianyin investment, taihe 3 companies involved. Citic industrial investment fund, China construction bank invested in the transaction of private equity fund. On the big trend, private equity funds have become more and more important in overseas m&a deals, and have become a fixture in trading structures. According to statistics, in 2016, represented by private equity funds and asset management company financial investors involved in the deal transaction amount more than $38.1 billion, more than twice the 2015. The purchase of west king's food is also done through a fund managed by cinda asset management. Overall, 2016 is the most active on the market of overseas mergers and acquisitions investment capital, IDG capital, private equity funds include everbright, KaiHui topix capital fund, the capital, citic capital, han's capital, hony, etc. 

 

How to break the rules on cross-border investment restrictions? 

 

Cross-border m&a as the boom, all of 2016, Chinese companies have announced and overseas investment m&a deals with data available to reach 438, up 20.94% from a year earlier, the cumulative announced the deal for $215.794 billion, up 147.75% from a year earlier, and more and more Chinese enterprises begin to try for the huge overseas acquisitions. 

 

But many analysts say, as a result of the foreign investment funds regulation and begin to tighten foreign exchange in the end of last year, overseas investment by Chinese enterprises mergers and acquisitions in 2017 speed may slow. Overseas mergers and acquisitions is still a big challenge for Chinese enterprises, in addition to the high difficulty of mergers and acquisitions, legal policy and the cultural differences, the foreign national security review, foreign investment stricter censorship, antitrust and censorship on the change of China's state-owned enterprises outside the regulatory environment, will affect out mergers and acquisitions by Chinese enterprises. 

 

One of the key elements of the success of mergers and acquisitions in Chinese companies is regulation and the direction of domestic capital markets, according to the hurun report. Yet the current regulatory environment, both abroad and internal, is tightening control over cross-border investment funds. Look from the external environment, there are several foreign media reported at the end of 2016, cross-border investment outflows, safe to strictly control to China's investment in more than $1 billion and noncore big mergers and acquisitions and foreign investment, and Chinese investment in more than $10 billion and special investment features of large amount of foreign investment projects and business implementation specification regulation; Look from inside, also at the end of 2016, the national development and reform commission, ministry of commerce, people's bank, the safe four ministries announced that it would focus on large noncore investment, limited partnership, foreign investment and other types of foreign investment, "irrational", began to strictly limit funds abroad. 

 

Yet the tide of water is unstoppable, and Chinese buyers want to be successful at sea. Hurun report also suggested that has important link will develop overseas investment m&a as buyers can prepare for the future development for a long time early, such as set up overseas subsidiaries. In addition, to participate in the acquisition of professional intermediaries is also essential for Chinese buyers, team of experienced, familiar with local market environment and the laws and regulations can be selection criteria.