Donald Trump presidency could be a threat to record China-US M&A levels

 
William Turvill
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Donald Trump did not appear to be China's biggest fan in the run-up to the US election (Source: Getty)

Donald Trump’s presidency could imperil China-US mergers and acquisitions (M&A) activity, which has reached record high levels this year.

Overall, inbound M&A into the US is at its highest year-to-date level since 2001, valued at $401.7bn (£322bn). And 65 bids from China make up $51.1bn of this total.

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This total value was up 463 per cent from $9.1bn across 54 deals at the same stage last year and represents the highest year-to-date figure on Mergermarket records.

This could be jeopardised, however, by Trump’s entry to the White House.

“The high volume of inbound Chinese M&A activity that the US has experienced up until now may be at risk with Trump in the White House,” Elizabeth Lim, Americas research editor of Mergermarket, said.

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“During his campaign, Trump blamed the Chinese for domestic job loss and this may increase oversight over foreign transactions, particularly those involving Chinese acquirers.

“While US assets are still likely to be in high demand, Chinese acquirers may tread with more caution than before.”

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