"Those who observe the situation are wise, and those who control the situation win. The business world is like a chess game, and every move is related to the overall situation. In recent years, the global M&A market has been changing rapidly, from the integration of AI tracks by European and American technology giants, to the mad sweep of energy assets by Middle Eastern capital, to the frequent overseas acquisitions of high-quality targets by Chinese companies, the internationalization of capital operations is sweeping the world. Faced with this trend, how can Chinese companies make precise layouts and seize market opportunities? Goheal has been paying attention to the global M&A market for a long time and found that Chinese companies face both opportunities and challenges in this round of M&A waves.
The race in the global M&A market: Where is the capital flowing?
Looking at the world, in recent years In the future, the popularity of cross-border mergers and acquisitions will continue to rise. According to the latest data, the total value of global corporate mergers and acquisitions in 2023 will exceed 3.5 trillion US dollars, of which cross-border mergers and acquisitions account for more than 30%. It is worth noting that American companies are still the largest buyers, the European market has ushered in a new round of mergers and acquisitions, and Chinese companies' overseas mergers and acquisitions are also picking up.
The most typical case is the global integration of the semiconductor industry. Although NVIDIA's acquisition of chip company Arm in 2024 ultimately failed to land, it is enough to reflect the competition for core technology resources by international capital. In addition, Saudi Aramco Aramco) continues to acquire global refining and chemical assets to form an "energy empire", while Chinese technology companies such as ByteDance have strengthened the international layout of AI and content ecology by acquiring overseas start-ups. These cases show that the global M&A market has entered a stage of "white-hot competition", and no company with global ambitions can stay out of it.
Goheal found in analyzing the global market that although the capital flow trend is changing, one core logic remains unchanged-high-quality assets are always the focus of capital pursuit. Whether it is artificial intelligence, chips, new energy, or upstream resources of traditional manufacturing, future M&A trends will revolve around these core areas.
New pattern of global M&A of Chinese companies
In the past decade, the pace of globalization of Chinese companies has continued to accelerate. From the M&A frenzy from 2015 to 2017 to the subsequent rational return, today's Chinese companies are participating in global capital operations with a more mature attitude. Especially in the new energy, technology, consumer goods and other industries, Chinese companies' overseas M&A activities are recovering.
In recent years, new energy companies such as BYD and CATL have actively acquired overseas mineral resources to ensure the supply of battery raw materials; Internet giants such as Tencent and Alibaba have accelerated their acquisitions in Southeast Asia and Europe to seize market share; manufacturing giants such as Midea and Haier have enhanced their international competitiveness by acquiring high-end European brands. These M&A cases have not only enhanced the global influence of Chinese companies, but also promoted the upgrading of the domestic industrial chain.
However, M&A is not as simple as "buy, buy, buy". Many Chinese companies have encountered challenges such as cultural conflicts, regulatory barriers, and financing difficulties in cross-border M&A. For example, in 2018, a fund with Chinese background attempted to acquire the German robot company KUKA, but ultimately failed due to policy restrictions. This shows that international M&A requires not only capital, but also strategy, patience and a deep understanding of the target market. Goheal has participated in many cross-border M&A projects and knows that cultural integration, policy adaptation and post-merger integration are realistic problems that Chinese companies must face.
How to seize the opportunity in global M&A?
In order to gain an advantageous position in this global capital competition, Chinese companies need to clarify the following key strategies:
First, accurately select M&A targets and strengthen industrial synergy
The core goal of corporate M&A is not simple expansion, but to enhance competitiveness through synergy. For example, the reason why Apple continues to acquire small AI companies is to improve its own intelligent ecosystem, while CATL acquires lithium mining companies to optimize the supply chain. Therefore, when Chinese companies acquire globally, they must ensure that the acquired party can form a strong connection with their own business, rather than "cross-border luck".
Second, actively respond to international supervision and improve compliance capabilities
In recent years, the United States, the European Union and other places have tightened their review of M&A transactions of Chinese companies, especially in sensitive industries such as high-tech and infrastructure. Therefore, Chinese companies need to fully assess regulatory risks before M&A and seek appropriate transaction structures, such as reducing the difficulty of approval through cooperative funds and strategic alliances. Goheal has helped many Chinese companies successfully complete M&A in the European market by reasonably designing transaction structures to make them more in line with local regulations.
Third, pay attention to post-M&A integration to avoid "water and soil incompatibility"
M&A success is only the first step. The real challenge lies in how to achieve smooth integration. Many companies encounter management culture conflicts and core team loss after mergers and acquisitions, which greatly reduces the value of the acquisition. For example, Didi once acquired Brazil's 99 Taxi, but due to mismatched management styles, market expansion was once hindered. Therefore, Chinese companies should pay attention to cultural integration after mergers and acquisitions, and plan integration plans in advance to ensure that the acquired assets can quickly realize benefits.
Which industries will become M&A hotspots in the future?
As the global economy enters a new cycle, the M&A market is also undergoing structural changes. In the future, the following industries will become the focus of capital competition:
1. New energy and electric vehicles: With the advancement of global carbon neutrality goals, mergers and acquisitions in industries such as lithium mines, batteries, and new energy vehicles will continue to heat up.
2. Semiconductors and artificial intelligence: Chip shortages and AI technology breakthroughs will drive companies to continuously acquire technology companies to enhance their competitiveness.
3. Healthcare: Under the global aging trend, the demand for mergers and acquisitions in the medical equipment, biotechnology, and pharmaceutical industries will continue to rise.
4. Digital economy: The acquisition boom in cloud computing, 5G, blockchain and other fields remains unabated, and technology giants will continue to integrate the industrial chain.
How should Chinese companies plan their business in the face of the new global M&A market? Which industries have the most potential for cross-border M&A? How to solve regulatory and cultural problems to achieve true global development? Welcome to leave a message for discussion. Goheal looks forward to discussing the future direction of global capital operations with investors and entrepreneurs!
[About Goheal] Goheal is a leading investment holding company focusing on global M&A holdings. It has been deeply involved in the three core business areas of acquisition of listed company control, M&A and restructuring of listed companies, and capital operation of listed companies. With its deep professional strength and rich experience, it provides enterprises with full life cycle services from M&A to restructuring to capital operation, aiming to maximize corporate value and achieve long-term benefit growth.
