Development, Problem And Solution-The Analysis Of Chinese Enterprises' M&A Activity

M&A stands for Mergers and Acquisitions, which were firstly developed in the U.S. It has experienced 5 major waves from it first emerged in the western marketing economic country in the late 19^th century.In China, with the economic growing, China's successful story at attracting the inflow of foreign direct investment (FDI) has made headlines in both media and academic circles for years. Recent surveys of foreign investors have consistently shown China as one of the top interesting destinations for foreign investors. In parallel with the "open-door" policy for attracting inward FDI, China has achieved initial success in implementing its "going-out strategy", which encourages domestic enterprises to play a part in international capital market and to invest overseas, some even start their own adventure of cross-border M&A.Chinese companies' M&A experience is different with western developed countries, which means we are lack of the relative knowledge in many aspects. In China, the cross-border M&A of Chinese enterprises also has it own particular characteristics such as backgrounds, motivation, modes, target countries and areas. Also, there are problems from external and internal environment.As the enterprises globalization is a trend for many Chinese leading companies. In order to analysis the phenomenon of Chinese enterprises' cross- border M&A, we focus on two significant Chinese companies who have launch large scale cross-border M&A, Lenovo and TCL.Through analysis, we find integration is a vital important issue in M&A. Lenovo's acquisition of IBM's PC division set the stage for Lenovo's entry into global...