(Yicai Global) Oct. 31 -- Natixis remains committed to not only working with Chinese partners in mergers and acquisitions but also to creating values and synergies effects, the French investment bank's Chief Executive Francois Riahi, told Yicai Global in an exclusive interview, believing that China's cross-border M&As have relatively matured.
Chinese firms have started to sell their overseas assets because they bring fewer benefits to the firms, he said. More and more Chinese firms may reject takeover opportunities because their needs have matured and they require greater value.
China's M&A market presents two distinct trends. Chinese firms are now heavily working on deals in Europe and other areas of Asia. They are also working on fewer mergers related to traditional assets such as natural resources and energy but focusing efforts on consumer and technology sectors, Riahi added.
The China-US trade frictions are an external factor that affects China's cross-border M&As. However, given what has been achieved in recent years, Europe and Asia remain Chinese firms' first choice for M&As regardless. Therefore, the trade frictions haven't had an obvious influence on such deals. As for internal factors, strategic M&As have been encouraged in China recently, Riahi said, adding that he will keep an eye on the impact of government policies on Chinese firms' takeovers.
Natixis further improved its presence in China's cross-border M&A market with its acquisition of Vermilion Partners' majority equities in March. Vermilion Partners is an independent international deal advisory firm based in the country.
Vermilion Partners' existing team has continued to manage and operate the firm since the takeover. By cooperating with Vermilion Partners, Natixis has a better foundation for its investment banking and M&A businesses in the country and French clients have already been in touch to discuss their China strategies, he added.
Editor: William Clegg