Cross-border M & A Strategy Study Of Chinese Enterprises In The Context Of Financial Crisis

By the influence of the financial crisis, the enterprise in Europe and the United States and other developed countries and regions have been involved into financial distress. Many enterprises have been bankrupted because of the shortages of cash flow. The asset prices have been dropped. All of these enterprises are much-needed injection of external funding. To ease the financial pressure on domestic enterprises, Europe and the United States and other developed countries'governments have reduced the threshold for foreign capital invest into their enterprises which give our Chinese enterprises an opportunity to take part into the developed countries' enterprises. Affected by the financial crisis, a lot of Chinese manufacturing companies in coastal cities have been closed, which has caused tremendous losses to our economy. However, as three decades of development with Chinese reform and opening up, China also had produced a number of powerful companies. These companies withstood the test of the financial crisis, have the strength and ability to use the financial crisis opportunity to go abroad. Therefore, how to achieve cross-border mergers and acquisitions in the context of the financial crisis becomes the focus of this research.In this paper, we first sort out the theory of cross-border mergers and acquisitions from macro and micro aspects. Then in the combing of the relevant theories, cross-border mergers and acquisitions, this paper discusses the world cross-border mergers and acquisitions, as well as cross-border mergers and acquisitions of Chinese enterprises in the context of the global financial crisis, and makes a comparative analysis to get the characteristics of Chinese enterprises cross-border mergers and acquisitions in the context of the financial crisis. After this analysis, this paper distinguishes the four types of the driving forces of the Chinese enterprises cross-border mergers and acquisitions. Subsequently, the article explores the factors that affect our strategy of cross-border M & A in the context of the financial crisis. Based on the above analysis, we proposed the strategic path of Chinese cross-border M&A in the context of financial crisis. After this, we use the idea to analysis the typical case of Rio Tinto, Alcoa of China to provide a reference for the cross-border mergers and acquisitions of Chinese enterprises in the context of financial crisis.