Risk Prevention In M&A Of Large State-owned Shipping Industry

Corporate M&A has become a primary means and trend for speedy expansion of enterprises. Activity like M&A basically strengthens corporate capability in dealing with new challenges and opportunities. If with effective implementation, the M&A will boost gains and market share of the enterprise as well as promote the profitability and corporate value. It is still to be noted that there exist substantial risks in corporate M&A, and therefore, success of an M&A case depends on various factors. Previous references suggest that overall rate of successful M&A cases is beyond 50%. Consequently, it shall not be underrated of the risk factors in M&A activities, international M&A in particular, for domestic state-owned shipping companies of large scale which currently are devoid of profound experiences in M&A.2005 has become the year of M&A in trade of global shipping industry when M&A cases related with several foreign shipping companies presented themselves one after another. Subsequently, new distribution of shipping market share among enterprises occurred, the ultimate status of which turned to be "one superior shouldered with several powerful enterprises". With the operational development for the past decades, large-scaled domestic shipping companies such as ChinaOcean Shipping (Group) Company and China Shipping (Group) Company had experienced great development, presently enjoying prominent and important ranks in global shipping industry. However, with a highly competitive market condition, they would also be confronted with the problems in relation to expanding the corporate scale and increasing the market competitiveness. This will be an opportunity as well as a challenge.The dissertation starts from corporate M&A theories and through studies into M&A cases in industries of shipping and others, it is designed to offer detailed preventative measures and suggestions against risks in potential international M&A activities for large state-owned shipping company, mainly including: determination of M&A goal and object, implementation of detailed and dutiful...