Analysis Of Cross-border M&A Cases And Its Enlightenment To China

Under the trend of economic globalization, a new round of technology and industry revolution, a global surge of large-scale Cross-border Mergers and Acquisitions (M&A) has been lifted by the multi-national companies, aiming to strengthen their economic status and implement their global strategies. As one of the direct investment ways, cross-border M&A has taken the place of "Greenfield Investment" gradually and become a predominant investment. Also, cross-border M&A has become an important way for the multi-national companies to implement their global strategies. The surge of cross-border M&A is lifted globally, which not only has changed some old economic rules, but also greatly has influenced the global economic pattern and international economic order in the 21st century.With entry into the World Trade Organization (WTO) and the deepening reform of the state-owned enterprises, China gets involved in the wave of Cross-border M&A more and more. On the whole, it is an inevitable trend for Chinese enterprises to step out for cross-border M&A, which is an efficient way and strong force to accelerate the great-leap-forward development of the productive forces, improve the socialist market economic system, make good use of natural resources as well as human resources and the domestic and foreign markets, expand the scale of the TNCs of China and promote the economic structure adjustment. Besides, with the enhancement of the national comprehensive strength, the preliminary establishment of market economy, the entry into the WTO and the gradual formation of the large-scale TNCs and the improvement of the infrastructure, such as telecommunication and traffic, better conditions and environments have been created for the Chinese enterprises to carry out their Cross-border M&A. Chinese enterprises have tried to make a comprehension and participate in cross-border M&A. However, all this is far from enough and the enterprises didn't make sufficient preparation to select the strategies for internationalization. Nowadays, a lot of micro and macro factors have constrained the development of Chinese enterprises' cross-border M&A in some degree. Therefore, an extensive study on Cross-border M&A theory and good analysis on the development and current status of Cross-border M&A has a great significance and is helpful for the internationalized management, participation in the global competition and continual healthy development of Chinese economy.Based on the FDI and M&A theory, this paper analyzes the development and the difference between the domestic and foreign enterprises by combining the theory and the examples. The paper also analyzes the existing problems in the cross-border M&A of Chinese enterprises according to the current status of Chinese enterprises. Based on a detailed analysis, some suggestions and strategies are put forward in the paper.