Chinese companies have renewed their interest in doing deals with Australia. Thus, special attention is paid to the acquisition of various objects, including natural resources and agricultural assets. Such initiatives, according to leading lawyers and bankers, have been encouraged by the diplomatic thaw between the two countries.
In recent weeks, some banks have received mandates from Chinese companies looking at Australian assets. However, other deal arrangers have reported incoming inquiries already from potential Chinese buyers.
Lawrence Mendes, a partner at international law firm Baker McKenzie, reported the first signs of interest in M&A from China. However, Mendes added that the number of deals between the two countries is still very small compared to the pre-pandemic data.
The new government in Australia intends to restore strained diplomatic relations with China after a period of clashes. Events such as the Covid-19 pandemic, as well as geopolitical and economic competition, have made cooperation between the countries complicated.