Service Introduction

Bank of China's Merger and Acquisition (M&A) consulting service leverages its advantages such as a global network, client resources and information networks to provide comprehensive advisory services for governments and business enterprises with M&A need, including global deal matchmaking, transaction structuring, due diligence, valuation analysis and transaction negotiations.

Global deal matchmaking: Leveraging a resource pool of 8 million corporate clients worldwide, over 10,000 branch channels, an overseas presence across 64 countries and regions, and experience in over 1,000 M&A projects, BOC can accurately and efficiently match the M&A and restructuring needs of clients and identify investment and M&A targets in specific industries in a list-based manner.

End-to-end M&A consulting: Having accumulated extensive advisory experience, BOC provides market-oriented M&A consulting services covering transactions structuring, due diligence, valuation analysis and transaction negotiations. Its subsidiaries, BOC International and BOC Securities, possess a deep understanding of capital markets and have extensive experience in areas such as public offerings and listings, M&A and restructuring and the onboarding of strategic investors. Leveraging a business network with synergistic cross-border platforms in the Chinese mainland and Hong Kong markets, BOC is capable of acting as a financial advisor in clients' M&A and restructuring projects, conducting comprehensive assessments of the counterparty from business, legal and financial perspectives to mitigate transaction risks.

Service Advantages

BOC has a strong client base and a foundation of trust built over many years of cooperation, enabling it to broadly understand the needs of both buyers and sellers, identify targets or buyers in a list-based manner to create a competitive environment. Meanwhile, BOC can quickly connect with the actual controllers and senior management of institutions such as central SOEs, state-owned enterprises and leading private enterprises to advance the M&A process.

BOC provides professional cross-border M&A matchmaking services and advice from the perspective of industrial logic, synergies, trend analysis and client trust. It can also conduct early assessments and rational planning for the transaction structure, to avoid adverse impacts on regulatory approvals and financing arrangements.

BOC places a high value on providing integrated services to its clients, coordinating resources from multiple business lines, including commercial banking, investment banking and investment, to ensure priority response. It can provide diversified and comprehensive services to enterprises both domestically and internationally, including in equity investments, M&A loans, bridge financing, one-stop outbound direct investment, debt restructuring, accounts services and fund custody. BOC can quickly and efficiently address challenging issues in transactions, including large-sum fundraisings and cross-border capital flows.

Case Study of Cross-border M&A Consulting Services

BOC acted as the exclusive financial advisor to the buyer consortium of Company Z and Company J in a project involving the acquisition of a 51% stake in Kazakhstan's Company A. Company A is one of the 100 "Champion Enterprises" supported by the Kazakh government under its national industrial revitalization plan. This acquisition is one of the 51 key projects under the China-Kazakhstan Industrial Capacity Cooperation Framework within the Belt and Road Initiative. Aligning with Kazakhstan's Nurly Zhol (Bright Path) new economic policy, the acquisition has been praised by the heads of state of both countries as a model of China-Kazakhstan industrial capacity and investment cooperation. The project not only promoted the export of China's automotive technology and management expertise, but also supported Kazakhstan in building its domestic automotive industry system, embodying the cooperative principle of "consultation, contribution and shared benefits". This is expected to further strengthen the strategic synergies between China and Kazakhstan in the Eurasian economic corridor.

During the project, BOC leveraged its experience in full-license commercial banking operations and possessed high sensitivity to the client’s existing debt and default risks, enabling early detection of debt issues with the target asset. At the same time, leveraging its advantages in internal-external and commercial-investment banking collaboration, the BOC Beijing branch worked with BOC Securities and the BOC Kazakhstan branch to assist the client in multiple rounds of negotiations with the seller and the target's creditors — thereby reducing debt costs, facilitating the closing of the deal and earning the unanimous approval of both the buyer and seller.