Research On The Financing Of Huaneng's Merger And Acquisition Of The Tuas Power Ltd

By the international financial crisis, China's production and operation enterprises faced with severe challenges, but also new round of development opportunities:in the current situation and conditions, adjustment of industrial structure is one of opportunity. Expertise in the industry to keep business owners and bring steady cash flow to ensure the survival of enterprises under the premise of restructuring through mergers and acquisitions to complete the industrial upgrading, business development is a good way. With the development of international business, corporate mergers and acquisitions greatly increased international. M & A volume of demand for funds is very large, successful acquisition needs strong financial support, financing the work and sometimes do affect the success or failure of mergers and acquisitions. The accumulation of funds alone owned enterprises is difficult to complete the merger, must be accomplished through external financing. How effective financing, achieve rapid mobilization of sufficient funds for acquisitions, while also allowing the lowest cost financing to the largest possible reduce business operating costs, is a subject worthy of study.Research on the acquisition of foreign financing has been more and more in-depth, forming a series of related theories. But that is a higher degree in the market of financial markets, and with the initial stages of financial development-related, not necessarily for the current situation of China's international M & A financing from a number of reference only. China related research is still in the infancy stage, is accompanied by the development of internationalization of Chinese enterprises gradually began.This paper focuses on the Huaneng's M&A of the Tuas Power Ltd. in the background conditions and manner of decision-making, both compared to other two cases happened in China. Through the data compared in debt financing and equity financing options, and overseas financing or domestic financing options, and other aspects of the financing cost comparison, we get to the conclusion that Huaneng financing and decision-making is reasonable. And also give advice on the recent China Overseas M & A financing.