The Integration Process In The Post Cross-border M&As

The cross-border M&As have increased because of the Economics globalization. The value of cross-border M&As account for 90% of the total amount of the world's FDI by the end of 2000. The cross-border M&As have been one of the most important means for the firms expanding international markets and acquiring resources abroad. Moreover, more and more firms take it as an important growth strategy. Chinese firms also begin entering market abroad by the way of cross-border M&As in the 21 century. Some cross-border M&As succeed, while others didn't obtain the satisfactory effect, even totally failed. The literature reveals that about 50%-70% of cross-border M&As failed, this is mainly for the reasons that there are no reasonable and effectively integrations after M&As. The problems study of the post-M&As integration is firstly begun abroad, but With the deepening development of the China's market reform, some domestic scholars start to study on it. Previously researchers mainly focus on the integration of business, culture, employers, systems, assets and etc. The failure of M&As were attributed to the strategic fit or organizational fit, cultural conflicts, lacking in value synergy between M&As corporations. The author finds that almost no post- M&As integration theories have taken the core-competence transfer as reviewing object or have considered that competence transferring between two M&As corporations, the sharing of knowledge and resources can create M&As values, and fulfill the M&As strategic synergy. Therefore, the center topic of the paper is core-competence transfer. This research implies two hypotheses: firstly, successful competence transfer between the acquiring firm and the acquired firm is both a process of creation values and an approach of achievement M&As strategic synergy; secondly, lack of core-competence transfer before the M&As is the cause of the failure of the firms' cross-border M&As. The paper have carried out a systematically research on cross-border 1 M&As integration, emphasizing on the point of the core-competence transfer, by the use of management theories, finance theories, organizational behavior theories, and international business management theories. The author expects the result of this research could provide a theory reference for managers of cross-border M&As, and also could enrich the cross-border M&A theory research.From the point that the core competence transfer is a source of achieving M&As' success, the paper defines the firm's post cross-border M&As integration as a process of the M&As firm's integration with the factors of the acquired firm, basing on the strategies and development rules established before- M&As and following foreign policy, social culture, economics and laws environment, reconstruct the enterprise factors that organizational structure, managerial styles, firm culture, production, marketing, personnel, to realize that the core competence or strategic assets are effectively transferred and accumulated between target firm and the acquired firm through interaction between tow firms. Consequently, the targets M&Aing firm can advance core competences in global areas and create firm values,.Competence transfer process (the paper also means knowledge competence transfer), means to transfers its knowledge competence to the other firm, this process includes two kind of activities :(1) the receiving process of the knowledge competence receiver; (2) the providing process of the knowledge competence provider.In the first chapter, the author uses the research achievements both domestic and overseas, beginning from the analysis of the causes of transnational M&As successes or failures. And the author puts forward the research problems studied in the paper.