Study On Risk Assessment And Decision Support System Of Mining Enterprises' Cross-border M&A

This paper firstly analyzes the significant meaning of conducting cross-border M&A and the necessity of going global for Chinese mining enterprises with the prediction of distribution and development trend of global cross-border M&A industry from the perspective of investment. It also reveals the importance of conducting researches on relevant theories of mining enterprises' cross-border M&A. Then it carries out a systematic analysis on investment risk of mining enterprises' cross-border M&A, introduces Information Entropy theory to the research of risk identification, concludes and calculates major risk factors in cross-border M&A of mining enterprises and thus establishes the index system for systematically evaluating mining enterprises'cross-border M&A. Furthermore, according to actual situation of diverse risk assessment models and methods, this paper also formulates the principle and model of choosing assessment method of mining enterprises' cross-border M&A, ultimately confirms the introduction of such methods as ANN (Artificial Neural Networks)-RBF algorithm, AHP (Analytic Hierarchy Process), fuzzy comprehensive evaluation method, real options method and conducts qualitative and quantitative estimates and evaluation to such major risks as currency risk, resources risk, target enterprise financial risk, integration risk. With an example of the purchase of Luanshya Copper Mines in Zambia by China Nonferrous Metal Mining (Group) Co. Ltd., the author carries out a case study and proves the effectiveness and practicality of risk assessment method. Finally, with the use of decision support system theory and computer technology, the author designs decision support system for mining enterprises'cross-border M&A and conducts applied research on information technology in mining enterprises' cross-border M&A.