Research On Motivation And Economical Achievement Of The M&A Between Foreign And Our Country State-owned Enterprise

Since being WTO entry China as one emerging global manufacturing center,will certainly to be one that foreign investors first choose, the state-owned enterpriseis important in China, naturally it is the key area foreign capital enters. Since 2000,many global well-known multinational corporations have successfully acquiredChina's name brand enterprises, like France Alcatel acquires Shanghai Bell,America Emerson Electric takes Avansys Power and so on. Especially Carlyle Groupacquires Xugong Construction Machinery in 2005, which fries among people.However, facing questions state asset outflow, economic security which possiblycreate from this, more and more people question the foreign capital's function tostate-owned enterprise reforms, is foreign capital useful?This article mainly studys the motive and economical performance behind theM&A between foreign company and state-owned enterprise. Firstly, I elaboratetheory connotation of cross-border M&A, combing out correlation theories andliteratures about the motive, and unify the actual case analysis, I point out agents ofM&A between the foreign capital and state-owned enterprise. Secondly, drawing onthe existing theory of merger performance, I choose several quite typical cases offoreign capital M&A to state-owned enterprise and then conduct the real diagnosisresearch, simultaneously I contrast and display predecessor's analysis result, the dataresult indicates the majority of state-owned enterprises by the foreign capital M&Aall obtained good market reaction and financial achievements. Finally, throughsynthesis to all the cases, it induces some problems and origin arising from M&A.aiming at the negative impact I propose the corresponding countermeasure andsuggestion, and find foreign capital M&A can effectively speeds up China's reformof state-owned enterprises.