A Study On The Reconstruction Of State Enterprises By Foreign M&A

The merger and acquisition (M&A) of state enterprises by foreign capital firstly came forth in the beginning of 1990's, and in the next several years it grew rapidly but suffered some serious problems, so in the middle of 1990's it was almost forbidden. After entering WTO China beginning to encourage foreign capital to purchase state enterprise, however, many scholars still think it has so many problems that it should be restricted. So whether or not this problem can be analyzed objectively and treated correctly will greatly affect the foreign capital policy and the reform of state enterprises.The text of this article has five chapters. Chapter 1 includes the significance of this article and the definition of basic concept. Chapter 2 discusses the necessity of the M&A of state enterprises by foreign capital. After the analysis of the situation of FDI in china, comparison between green-land investment and M&A, and the situation of state enterprises reform, there comes to a conclusion, that is, there's an instant demand of foreign M&A and it's an inevitable choice to reconstruct our country's state enterprises. Chapter 3 reviews the theories of M&A in the country and out of the country, then analyze their applicability and value of guidance. At last the author brings forward the theory of "international dilation of core competency" based on the characteristic and trend of international M&A, which can interpret the motives of foreign M&A. Chapter 4 looks back to the history of state enterprises reform; then sums up its characteristic and tendency on the study of lots of cases; indicates their foreground and related problems by the analysis of some popular M&A mode; at last analyzes the new modes will come forth and new problems may occur. Chapter 5 is an emphasis of this article. Though analyzes the effects of foreign M&A this chapter illustrates the significance of foreign M&A to the reform of state enterprises, at the same time disproves the views that foreign M&A would leading to monopoly, loss of state assets, and weaken the dominant status of state economy, and so on. Then there comes to an conclusion that the negative effects is insignificant comparing to the positive effects, so we should emancipating our mind to enhance the policies to utilizeFDI and reform state enterprises. In the last chapter, due to obstacles to foreign M&A of state enterprises, chapter 6 discusses how to encourage it, from consummating laws, making the bargain information transparent to cultivate the agencies between sellers and buyers, and so on.