Are Chinese Acquirers Discriminated against in Cross‐border Mergers and Acquisitions? An Analysis Based on Covered Transactions Filed with CFIUS

Abstract

This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States (CFIUS) of cross-border mergers and acquisitions targeting American companies based on publicly available news reportsand announcements to examine the heterogeneity hypothesis in the CFIUS review process. A comparative analysis of case studies and an empirical analysis of logit regressions are performed. We also explore how CFIUS reviews may have an impact on corporations' future mergers and acquisitions decisions in a panel data model setting.The results show that both unfair treatment in CFIUS review and the deterrent effect of CFIUS interventions have contributed to the recent sharp decline in China's direct investment in the US.

The Geographical Rotation of Local Officials and Enterprise Cross‐city Mergers and Acquisitions in China

“…These have made enterprise M&As the focus of academic studies (Chakrabarti et al, 2009;Chen et al, 2020). The factors influencing M&As can be divided into two categories: internal and external factors.…”

Chinese cross-border acquisitions: stylised facts and new directions

“…Furthermore, the media amplified the potential threat posed by Chinese takeovers, generating negative perceptions of both Chinese MNEs and developed host countries, deterring high-profile CBMA deals (Backaler, 2016). Moreover, Chen et al (2020b) claim that unfair treatment in the CFIUS review process and interventions have acted as a deterrent to China's FDI in the USA, resulting in the recent sharp decline of Chinese CBMAs. With the "perception" of being unwelcomed in advanced economies, Chinese MNEs may have been turning attention to acquisition in developing economies which have been more welcoming to Chinese CBMAs.…”