On The Oversea Merger And Acquisitions Of TCL Corporation

With the Chinese economic development and domestic competitive intensification, a passel of manufacturing begins to seek a way to help international expansion .The cross-border M&A is a shortcut to achieve international operation. In 2004, TCL Corp. merged and acquired TV business from Thomson Group and Mobile Phone business from Alcatel Corp... Now, the results of the mergers are shown to the world. Exploring the reasons for the failure of TCL M&A is to help the later make better decision. Firstly, the transnational basic theory is introduced briefly. Then the performance evaluation after M&A is discussed by the use of analysis for long-term operating results. Using SWOT analysis, the motives of TCL M&A and integration management are studied. The failure of TCL Multimedia Holding Ltd is resulted from fault forecasting for industrial development prospects, improper merger agreement, and unsuccessful cultural integration, high operating and restructuring costs. And the success of TCL Communication Holding Ltd relies on effectively reducing the human cost and acquiring synergies. On this basis, studying further the differences between target enterprises, the TCL Group's internal management disadvantages are exposed: lack of core competitiveness; unscientific decision-making. At last the article put forward the conditions which transnational M&A of Chinese enterprises has and the issues to be paid attention.