China is buying up American companies fast, and it’s freaking people out
Portia Crowe
BusinessInsider.com
Feb. 21, 2016
Here’s a story you’ll be hearing about a lot this year.
Chinese companies have been buying up foreign businesses — including American ones — at a record rate, and it’s freaking out lawmakers.
There is General Electric’s sale of its appliance business to Qingdao-based Haier, Zoomlion’s bid for the heavy-lifting-equipment maker Terex Corporation, and ChemChina’s record-breaking deal for the Swiss seeds and pesticides group Syngenta, valued at $48 billion.
Most recently, a unit of the Chinese conglomerate HNA Group on Wednesday said it would buy the technology distributor Ingram Micro for $6 billion.
And the most contentious deal so far might be the Chinese-led investor group Chongqing Casin Enterprise’s bid for the Chicago Stock Exchange.
A Chinese deal spree
To date, there have been 102 Chinese outbound mergers-and-acquisitions deals announced this year, amounting to $81.6 billion in value, according to Dealogic. That’s up from 72 deals worth $11 billion in the same period last year.
And they’re not expected to let up anytime soon. Slow economic growth in China and cheap prices abroad due to the stock market’s recent selloff suggest the opposite.
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