According to market experts, this mammoth deal provided valuable insights into China’s broader view of its future as it signaled important trends in the country’s policy on innovation, biotechnology, intellectual property, and globalization. “This acquisition is very probative of what’s happening in China. It really defines the frontier,” stated Robert Kuhn, a longtime China expert. He also felt that this deal signified that big companies in China had extended their shopping spree, especially since 2015, by carrying out overseas acquisitions on a large scale (Refer to Exhibit – I for China’s Overseas Shopping Spree). “Including the ChemChina deal, the combined value of China’s outbound mergers and acquisitions (M&A) has reached about US$ 68 billion so far this year (as of February, 2016),” according to deal tracker Dealogic . According to Dealogic data, in just one month in January 2016, Chinese bidders had announced around 66 foreign takeovers. “It signals the next stage of development that they are looking outward and traditionally acquisitions have been a very recognized way of developing a platform outside your domestic market. It’s a sign of a growing and maturing domestic market that they can now look overseas for acquisitions,” said Lorcan Tiernan (Tiernan), an M&A expert at financial-services law firm Dillon Eustace. ...

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