Current Status Of Cross-border Mergers & Acquisitions In Southeast Asia And Its Implications

Between the middle of 1990's and the beginning of 21st century, the global Cross-border M&A activities, pushed by transnational corporations of developed countries, reached its climax. Till now, Cross-border M&As are the main force behind the rise of FDI. However, Cross-border M&As in Southeast Asia have just started.With the continuing development of global Cross-border M&As, Cross-border M&As in Southeast Asia are on the rise, which makes great contribution to the inflow FDI of this area. The reasons that accelerate the development of Cross-border M&As in Southeast Asia, include the short-term promotional effects of the Southeast Asian Financial Crisis happened in 1997 and the favorable policies adopted by Southeast Asian countries to attract FDI, which also promote the development of Cross-border M&As in this area. However, there are some concerns about the implications of Cross-border M&As to the host country's economy. From the example of Southeast Asia, Cross-border M&As had some positive implications to Southeast Asian business restructuring during the Financial Crisis. By contrast to the means of Greenfield FDI, Cross-border M&As have some negative implications to the host country's economy.Nowadays, the phenomenon of Foreign Capital M&A in China is increasing. How to attract and use FDI with the Cross-border M&As mode? How to avoid and reduce the negative implications brought by the Foreign Capital M&A? Chinese government and enterprises should realize these two important problems and think about how to deal with them. This paper aims to provide some useful experience and lessons through the analysis of the development of Cross-border M&As in South-east Asia and its driving forces and implications.