On the other hand European governments are even more sceptical of acquirers from the People’s Republic these days, and Chinese officials, worried about debt and capital flight, have tightened control of overseas investment too.
Global competition authorities will also take an interest. Nevertheless, it seems likely that more cash-rich Chinese companies like Midea, seeking to hedge weak domestic demand with overseas customers, will gingerly test cross-border M&A markets this year.
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