Cross-border Merger And Acquisition Motivation Research Of Chinese Manufacturing Enterprises

In the 21^st century,the world manufacturing industry is experiencing a profound strategic reorganization,the United States,Europe and Japan and other developed countries is configuring the resources of manufacturing industry in the world to reduce the production costs and enhance market competitiveness while they are keeping their monopoly in high-tech.As the current main way of the international direct investment,cross-border merger and acquisition played an important role in the global economic restructuring.In order to adapt the demand of the economic globalization,multinational companies carry out merger and acquisition in pursuit of the strategic objectives of the company,which make a new kind of international division which is based on the global industry value chain is taking shape.During the seven years after entering WTO,China has implemented the commitment totally,improved the investment environment.After 30 years of reform and opening up, China has not only become a very competitive world manufacturing and processing base,but also become a attractive global market.China is the hot spot of global cross-border investment.The market competition becomes more and more serious while the Chinese market is nurturing the potential of this huge market.To Chinese manufacturing enterprises, the competitive situation has changed.Competition battlefield is no longer simply divided into domestic market and foreign market,it is the key strategic aspect of the global industrial value chain.This new pattern of competition puts forward higher requirements to the manufacturing enterprises of our country which is weak and still in processing and manufacturing aspect of industry value chain.How to shake off the control of multinational companies and how to realize the optimization and upgrading of the manufacturing industry is a problem to solve urgently.The number of cross-border merger and acquisition of Chinese manufacturing enterprises increase sharply.Transnational business of Chinese manufacturers has begun to take shape.The number of entering foreign markets by cross-border mergers and acquisitions is increasing year by year.In 2003 TCL acquired Schneider which is a German company,then BOE acquired of South Korea Hyundai Display Corporation and TFT-LCD business of South Korea HYNIX Semiconductor Corporation,in 2004 SAIC acquired Sangyong Motor of Korea and Lenovo Group acquired IBM PC and so on,that caused a great impact in the world. Following the further economy development and further enhancement of comprehensive strength,the momentum of cross-border merger and acquisition of Chinese manufacturing enterprises will become stronger in the next period.In order to survive well in the increasingly fierce international competition,for the Chinese manufacturing enterprises,the only way is integrating into the global industrial chain with a win-win attitude to with game with the transnational corporations.Overall,on the basis of summing up the general motivation of cross-border merger and acquisition of manufacturing enterprises and the development situation of Chinese manufacturing industry,the author analyze the motivation of Chinese manufacturing enterprises with the industry perspective and enterprise perspective separately and put forward four kinds of cross-border merger and acquisition pattern which is suitable for Chinese manufacturing enterprises.In the first part of the paper,the concept of cross-border merger and acquisition and the foreign related theory of cross-border merger and acquisition are reviewed.In the second part,taking the companies of United States as an example,the author reviewed the five waves of transnational merger and acquisition,summarized the general motivation of today's manufacturing enterprises.In the third part,first of all,the author analyzed of the development situation of Chinese manufacturing enterprises;Secondly,from the industry view,using the "smiling curve" theory,analyzed the motivation of merger and acquisition of Chinese manufacturing enterprises which is in the low value-added aspect of the industrial chain;Finally,from the business view,analyzed the motivation of merger and acquisition of Chinese manufacturing enterprises which is still weak in the overall competitive strength.In the fourth part,with the case of merger and acquisition of Chinese manufacturing enterprises,put forward four kinds of cross-border merger and acquisition pattern which is suitable for Chinese manufacturing enterprises to implement Internationalization. In the fifth part,take the acquisition IBM PC of Lenovo Group as a case,analyzed the motivation of merger and acquisition of Chinese manufacturing enterprises empirically.