Factors influencing dealmaking Impact of Chinese slowdown on M&A markets Figure …. †ubound Chinese M&A deal values ino ‡uroˆe and ‰orh AŠerica The decline in Chinese GDP growth and the shift to a consumption-driven $35.5bn economy is mirrored by a steep increase in M&A activities, both domestic as well as cross-border. So far this year, Chinese companies have spent $65.8 billion in overseas acquisitions, with the majority in Europe. However, there was a decline in the volume of outbound acquisitions made in the E&R and manufacturing sectors, while there was an increase on the part of TMT and consumer business companies. $10.7bn The slowdown in Chinese growth is expected to have a ripple effect on $8bn M&A markets, first in the commodities sector, where consolidation is expected, as $2.7bn well as in commodity exporting nations where activities could slow down. It could 2009 2015 YTD 2009 2015 YTD also lead to consolidation in sectors such as shipping and logistics which depend on Europe North America growth in trade. Figure 8. China’s disclosed M&A deal values ($bn) and GDP growh ()  ­ €‚ ƒ„M Total disclosed deal values ($bn) GDP growth % ‡ ­… † ­ƒ … ­€ „ ­ ƒ ‡ ‚ … € ƒ ­ € Š € € ­€ €€ ‚€ ƒ€ „€ …€ †€ ‡€ ‹ € ­ € ­­€ ­€€ ­‚€ ­ƒ ‰T utbound deal values nbound deal values ˆ‚ € ­„ Domestic deal values Œhina’s ‘ercentage change in real GDP (%) Source: Deloitte analysis based on data from Thomson ne aner and conomist ntelligence nit