Study On Strategies Of Transnational Enterprise' Merger &Acquisition In China

Since the 1990s,under the drive of the increasingly in-depth economic globalization and integration, the various countries'markets open increasingly, and that promotes cross-border Merger &Acquisition gradually coming into being a wave and to be dominant mode of the Foreign Direct Investment (FDI) instead of Green Field. Especially after China's accession to WTO, the relative laws and regulations are carried out faster than before,which clear away the barriers for foreign capital to tip into China's market. As to the industries that foreign capital M&A can come into, most of them has realized being opened to the outside world basically,including some fields tightly related to the development of economy, such as automobile,finance, services and so on. As to the object of foreign capital M&A,the state-owned cooperation and listing companies has got the permission to attract foreign capital. The"Provisional Regulations Regarding Mergers and Acquisitions Involving Foreign Investors and Domestic Companies"implemented from April 12th, 2003, allows foreign capital to interfere into nearly all kinds of enterprises.This article , which bases on studying previous M & A theory , using combinatorial integrated research methods and combining the theory and practice, the macro and micro,analyzes comparatively the development of M & A at home and abroad and the differences between them. Meanwhile it summarizes the development trend of the foreign-capital enterprises'M & A in China with analyzing the course of development and the status quo. Then based on the analysis of the former text, it explains and illuminates the connotation,motive and pattern of cross-border M & A in theory with the global background of development in cross-border M & A. Finally, we analyze specifically the M & A case between Emerson Electric and Shenzhen Huawei Electric. From the case and the current dominant model of cross-border M & A,the article point out the aspects the foreign-capital enterprises should pay attention to in China,the measures Chinese enterprises should take and the M & A strategies Chinese enterprises implement overseas.