Rani Jarkas: Chinese buyers target insurance companies for overseas acquisition

Chinese companies have been on an outbound acquisition spree for the last few years, covering real estate, hotels, movie studios, healthcare, soccer clubs, chemicals and high-end technology.

Now, Chinese buyers looking for overseas acquisitions are now adding a new item to their list of potential takeover targets, insurance companies. The Wall Street Journal reported early this week that three leading bidders for Singapore-based Asia Capital Reinsurance Group Pte Ltd all obtained capital support from China.

China announced a record $92 billion of overseas mergers and acquisitions deals from January to March this year, accounting for 30 percent of the world’s total. Within these M&A cases, there are seven overseas insurance deals, with total value of US$1.86 billion. Prior to 2014, the insurance sector went several years without years.

According to Thomson Reuters data, Chinese outbound M&A activity has more than doubled in two years, hitting a record $120 billion in total deal value so far in 2016.

In particular, private companies will continue to be an increasingly important force in overseas mergers and acquisitions as they are more nimble in their decision making compared with SOEs.

Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of experience around the globe, said, “There has been a huge amount of overseas investment by Chinese companies over the past 15 years and we expect to see more in a wider range of industries for the forthcoming years.”

Rani Jarkas, the Chairman of Cedrus Investments.

Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas

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王雷(Rani Jarkas):中国买家竞购海外保险公司

过去几年间,“走出去收购热潮席卷了中国企业,覆盖了房地产酒店电影公司医疗足球俱乐部化工高科技领域。

现在,对于正在海外市场上开展并购活动的中国企业来说,保险公司已经成为了新的竞购目标。《华尔街日报》本周报道了总部设在新加坡的亚洲资本再保险公司(Asia Capital Reinsurance Group Pte Ltd)的并购战,所有三个领先竞标者都由中国企业提供支持。

今年一月到三月间,中国海外并购交易总价值达到920亿美元,占到全球总额的30%。今年以来中国买家已经宣布了七项收购海外保险公司的交易,其总价值达到了18.6亿美元。在2014年以前,保险行业中则有好几年都没有出现过这种交易。

根据汤森路透的数据,中国海外并购在两年内翻了一番,今年截至目前为止总价值达到1200亿美元。

其中,由于私营企业的决策程序相比国有企业更加灵活,其将日益成为海外并购的中坚力量。

赛德思投资董事长王雷(Rani Jarkas)有多年的全球投资经验。他表示:“过去十五年中国企业参与了大量的海外投资交易,我们相信未来在更广泛的行业看到中国企业的身影。”

Rani Jarkas, the Chairman of Cedrus Investments.

Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas