Research On The Motivation And Performance Of Chinese Mining Enterprises’ Overseas M&A

In the context of economic globalization,overseas mergers and acquisitions are an effective way to help companies expand their scale and enhance their strength,and promote the effective use of global resources.Since China’s “going out” strategy was put forward,Chinese companies’ overseas M&A cases have been increasing.Although China’s overseas M&A development time is short,due to China’s rapid economic growth and rapid recovery after the financial crisis,domestic enterprises have the opportunity to bargain 2008.A high-quality enterprise that has fallen into a financial crisis abroad after the financial crisis.Compared with other industries,China’s mining enterprises are the first practitioners of “going out”.Especially since the 21 st century,the amount of overseas M&A investment of mining enterprises has generally maintained an upward trend.After years of development,not only has it spread all over the world.The region with rich mineral resources in the world,and the merger and acquisition model of Chinese mining enterprises in overseas mineral resources mergers and acquisitions is constantly innovating,and has always occupied an important position in the outbound mergers and acquisitions of domestic enterprises.As China is in a period of rapid economic development,the demand for mineral resources is large,but the mineral resources are characterized by uneven geographical distribution and non-renewability.It is an inevitable trend for mining companies to conduct overseas mergers and acquisitions,and it is an inevitable trend through overseas mergers and acquisitions.It can acquire upstream mine and mineral resources,increase the types of main business,and diversify product mix and risk.However,due to the short development of mining companies in China,the lack of experience and other reasons,the failure rate of mergers and acquisitions is very high.Therefore,it is necessary to explore the specific problems encountered by Chinese mining companies in the practice of overseas mergers and acquisitions,and what aspects should be paid attention to in the whole process of mergers and acquisitions to achieve better results.This paper firstly combs and summarizes the domestic and foreign theories and literatures in the existing fields,then introduces the relevant theoretical foundations involved and the development history,characteristics and existing problems of Chinese mining companies’ overseas mergers and acquisitions,and then through the typical merger case-Luoyang Molybdenum Industry Acquired the Brazilian Phosphorus Phosphorus Business and the Congo(Gold)Copper and Cobalt Business,conducted an in-depth analysis of its M&A motives and M&A payment methods,and evaluated its overseas M&A performance through the event study,through the analysis of financial index and non-financial indicators,and explored Luoyang Mo The factors that have contributed to the success of overseas mergers and acquisitions and the related problems have found that the success of mergers and acquisitions has the following factors:(1)to see the industry cycle situation and conduct mergers and acquisitions at the bottom of the cycle.(2)The target assets are selected accurately and have strong purpose.(3)Adequate self-owned funds and fast mergers and acquisitions.(4)The state-owned enterprises are transferred to private enterprises,and the system is more flexible.(5)Effectively avoid political risks.(6)Better overcome the risk of integration.This paper proposes the following suggestions through the above analysis and research for more effective overseas mergers and acquisitions of Chinese mining enterprises:(1)Recognize the industry situation and formulate a reasonable strategy.(2)Pay attention to the selection of overseas M&A target assets(3)Ensure sufficient funds,timely purchase of highquality projects(4)Focus on post-merger integration factors.