China’s agricultural companies are becoming increasingly vertically integrated and as the sector matures it is seeing increased investment and merger and acquisition activity according to a report by consultancy firm Deloitte. The report states that between 2007 and 2013 149 agricultural mergers and acquisitions occurred in China. Of these, the monetary value of 114 deals is known, totaling US$13.7 billion. The plantation and livestock industries account for the majority of the deals with livestock accounting for 18% of the inbound deals, 29% of the domestic deals, and 60% of the outbound deals. Merger and acquisition targets of large Chinese agricultural firms are no longer limited to the domestic market as businesses seek greater economies of scale and land. Historically the Asian continent has been the biggest recipient of outbound Chinese investment, followed by North and South America, Africa, Europe, and Australia.
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