After a brief lull in activity, Chinese investors could help drive next year’s M&A frenzy. But if past performance is anything to go by, there are reasons to exercise caution before signing on the dotted line.
The aspiring "LVMH of China" will only be considering profitable labels with high growth potential.
The Chinese clothing and textile giant, which already controls Gieves & Hawkes, Sandro and Maje, has purchased a majority stake in the Swiss clothing and leather-goods brand.
As Chinese firm Shandong Ruyi emerges as the leading bidder for Swiss leather-goods maker Bally, the global luxury industry should take notice.
The Chinese textile producer has a controlling stake in the owner of British bespoke suit maker Gieves & Hawkes and has already acquired SMCP and British trenchcoat maker Aquascutum.
SMCP, the KKR & Co.-backed owner of French fashion brands Sandro, Maje and Claudie Pierlot, has attracted bids from Lion Capital and Chinese textile producer Shandong Ruyi Group.