Study Of Cross-border Mergers And Acquisitions Of The Theory Of Cross-border Mergers And Acquisitions, Operations, And Chinese Enterprises

As a means of direct investment in foreign countries, cross-border mergers and acquisitions has become an important means for transnational enterprises to realize their global strategy. With the cross-border mergers and acquisitions surge world-widely, its importance becomes obvious. It not only changed some old economic regulations, but greatly influenced the world economic pattern of the 21st century and international economic order. In current cross-border mergers and acquisitions cases, developed countries dominate, adjusting the international industrial structure and transferring the industrial technology. However, the acquisition cases in developing countries increase gradually. As the biggest developing country, China, in recent years, conduct some cross-border mergers and acquisitions, including overseas purchase of oil field and gas field by CNPC and CPCC, Acquisition of PC business of IBM by Lenovo Group, and acquisition of Korean REXTON Auto by SAIC, etc. With the further implementation of "Going-out" strategy, and increase and deepening of enterprise transnational operation, cross-border mergers and acquisitions by enterprises in China will become more and more, deeper and deeper. And it has shown some flourish.In the past 100 years, there are altogether 5 acquisition tides. Company acquisitions develop from inner industrial acquisition to trans-industrial area, from home to abroad, from developed countries to global area, from horizontally to vertically and compound cases, and finally shape an irreversible tide. Since 1990s, with the quick development and improvement of information technology, economic globalization and capital flow internationalization, acquisition has surged forward, and the 5th acquisition tide has been shaped. In 1987, total amount of cross-border mergers and acquisitions are less than $100 billion, in 1990, $151 billion, in 1999, $720 billion, in 2000, over $1000 billion. In the 5th acquisition tide, acquisitions by developed countries have obvious transnational characteristics. Cross-border mergers and acquisitions then accounts for 1/4 of the global acquisition. By the end of 20th century, cross-border mergers and acquisitions has become a key way for direct investment to foreign countries, even more important than green land investment. In 1999, it accounts for 83ï¼… in total transnational investment, and in 2000, 87ï¼…. UNCTAT indicated that cross-border mergers and acquisitions of the enterprises have become a major drive of foreign direct investment, and become one of the strategies for transnational companies to improve the operation. With the quickening of economic globalization, cross-border mergers and acquisitions, which aim at strengthening market position, cost control, improving efficiency, resource distribution optimization, have indicated an up-graded global competition. As cross-border mergers and acquisitions develop fast world wide, it is imperious to explain the new phenomena and new problems in the field of CBM&As and guide the practice. Due to the great progress of Transaction Cost Theory, Contract Theory, Motivation Theory, Agency Theory, Property Right Theory, Asymmetrical Information Theory, and Game Theory in recent 10 years, CBM&As Theory develops very fast, and has become the most active field in current Western Economics. However, as we study the researches on CBM&As by foreign experts and scholars, their theories mainly focus the objects of developed countries-USA, EU and Japan, and explain the motivation of CBM&As of these developed countries.Different schools of western M&A theories analyze and explain acquisitions from different angles. Some analyses and explanations have certain applicability to cross-border mergers and acquisitions, because CBM&As was born in domestic M&A; some are not applicable to cross-border mergers and acquisitions, because CBM&As has some specialties different from domestic M&As. The limitation of M&A theory on CBM&As lies in: First, M&A theory is not a complete theory yet, even on explanation of domestic M&As.