China's 'left field' buyers shaking up the global M&A scene

Hong Kong

FOREIGN takeover bids by little-known Chinese companies, from real estate firms to a vacuum cleaner maker, are driving a surge in the due diligence industry as their targets and even rival suitors seek to answer the question, "Who are these guys?"

Facing a slowing economy at home, Chinese businesses are hunting for non-yuan assets abroad despite little foreign buyout experience. Chinese outbound M&A activity has more than doubled in two years, hitting a record US$120 billion in total deal value so far in 2016, according to Thomson Reuters data.