China's $US120 billion insurance and property investor, Anbang Insurance Group, has stepped up its pursuit of Australian assets, meeting with local investment bankers and potential takeover targets. 
Street Talk can reveal executives from the Chinese giant travelled to Australia this month to refresh their push into the region and remind dealmakers they have the appetite and capacity to chase large acquisitions.
Anbang caused a stir when it abandoned a $US14 billion bid to acquire Starwood Hotels & Resorts Worldwide this month. But the company has not lost its hunger for deals, agreeing to buy Allianz SE's operations in South Korea.
Locally, Anbang was an underbidder for private hospital owner Healthe Care and at one stage ran a ruler over private hospital group Healthscope, sources said. Australian property assets have also made it on Anbang's radar and recently the company considered buying a stake in insurance re-seller Greenstone.
Of course, foreign acquirers are treading cautiously around potential transactions in the lead-up to a federal election in   July. The Foreign Investment Review Board is also bedding down new criteria and fees it introduced in   December.
Anbang's interest comes as suitors continue to pursue inbound Australian deals, despite a recent rally in the local currency. Outbound deals so far this year have been led by Wesfarmers' acquisition of Homebase.
New research by Baker & McKenzie shows cross-border activity has had a muted start to 2016, but the law firm expects these transactions will continue to be a dominant force in global deal volumes.
Baker's cross-border M&A index dropped to 213 points in the first quarter compared to 358 points three months earlier. The baseline score is 100, which represented 2009 activity.
Still, cross-border activity accounted for 53 per cent of M&A activity in the first quarter, when companies were hit with volatility centred on concerns on China's economic prospects. More recently, a possible Brexit has weighed on sentiment.
Baker's partner David Holland remains upbeat on Australian cross-border transactions, telling Street Talk the pipeline in both directions looked healthy. He doesn't expect the recent rally in the Australian dollar to deter offshore acquirers.


Beyond border    
Cross-border deals involving Australian companies    
INBOUND    
Target company  Target sector Bidder country Bidder Company  Value ($m)
Asciano   Transportation Canada  Consortium (CPPIB, GIP) 9426
Santos (11.72% stake) Energy  China  ENN Ecological  755
Ainsworth (53% stake) Leisure  Austria  Novomatic AG Holding 340
Taralga wind farm  Energy  China  State Power Investment 224
Rio Tinto (Mount Pleasant) Mining  Indonesia  Mach Energy Australia 224
    
OUTBOUND    
Target company  Target sector Target country Bidder company Value ($m)
Homebase  Retail  UK  Wesfarmers 482
Amara Mining  Mining  UK  Perseus Mining 81
IntegraColor  Manufacturing US  Orora  77
Conject   IT software Germany  Aconex  73
Capital Markets  Financial serv US  Computershare 71
    
SOURCE: BAKER & MCKENZIE