Theory And Practice Of Cross-border Mergers & Acquisitions

Since the nineteenth century, there are five large-scale M&A (Mergers & Acquisitions) of enterprises in the western countries. Cross-border M&A came forth in the 1960s, which is between the third and forth M&A of enterprises and has developed following the M&A of enterprises. Comparing with the Green-field Investment, Cross-border M&A can make the enterprises get more new market opportunities , increase market coverage rate, concentrate the tangible assets and intangible assets from different countries rapidly, optimize resources to reduce the repetitive constructions in the field of Researching & Development, enhance the core-competition of the enterprises. By right of these advantages, Cross-border M&A has turned into the main investment of FDI, which also has taken a percentage of 80 of FDI.The fact of China is that Foreign Direct Investment of our countries has ranked the first in the world, however, Cross-border M&A takes a little percentage of the total amount! At present, facing the strategy of revitalizing old industrial base of Northeast China and presenting northeast China as the experimental region for Cross-border M&A, we should take good use of the strategy to attract foreign investment ,especially the Cross-border M&A to revitalize northeast China! Therefore, This text makes further discussion and studies of Cross-border M&A in China and northeast of China.Besides foreword and conclusion, the text is divided into three parts altogether. The first part narrates the meaning, characteristic, motivation and theoretic base. Then combining the practice of Cross-border M&A in China, the author present some reasonable suggestions. Finally, the paper analyzes the effect of Cross-border M&A to revitalize old industrial base and puts forward some concrete measure and feasible suggestion for the development of Cross-border M&A in northeast China.