Chinese M&A deals in agriculture reach US$10 billion

BEIJING - Chinese merger and acquisition deals in agriculture have reached a record US$9.8 billion so far this year — a seven-fold jump from 2013 — according to international financial software company Dealogic PLC, which says that by the start of September, Chinese firms made 27 deals in the field of agriculture with a markedly large number overseas.

Fu Xuejun, an analyst at Huarong Securities Co Ltd, said mergers and acquisitions in agriculture will be an important area of Chinese investment going forward, as well as a crucial aspect of the national development strategy.

Fu also indicated that higher demand for agricultural transformation and upgrades in China will lead to the development of strategies for vertical integration in the supply chain — not only to ensure food security but to develop internationally and become global operations. www.webershandwick.cn (ATI).