Saic Acquisition Of Ssangyong Motor Case Analysis

Since the 1990s, with waves of industrial upgrade, restructuring and deregulation and economic integration all over the world, the scale and amount of the merger and acquisition (M&A) was rising ceaselessly. The volume of transaction was reaching new heights as well. With the constant growth of Chinese enterprises, they begun to involve in transnational M&A. Cross-border M&A have became one of the most important foreign direct investment (FDI) way for Chinese enterprises. They want to get key resources and technologies on this way and expand themselves as fast as possible.Although the M&A surges wave upon wave, the success rate is low, most of them didn't achieve the merger synergies and financial returns as expected. Good enterprise culture is the third contribution factor, which leads to acquisitions' success, but the difference between merged enterprises cultural is the biggest decision factors resulting in acquisitions' failure. Chinese enterprises are still in the exploratory period of M&A; they are lack of enough market experience and methods that have great economic value. Besides, the uniqueness of the Chinese culture makes Chinese enterprises have to face greater challenges in culture integration than enterprises in other country.As the first oversea acquisition case in Chinese automotive industry, the case of Shanghai Automotive Industry Corporation (group)(SAIC) acquire Sangyong Motor Company (SYMC) have experienced plenty of ups and downs, but the new company went to a good situation and finally made up the deficits and get surpluses in first half year in 2007 .It get the expected merger synergies and financial returns gradually. We can learn a lot experiences and lessons from the case of SAIC and they give the enterprises that are going to expand oversea great value of reference and inspiration. Text is divided into six chapters. ChapterⅠproposes the research causes, research purposes, research ideas and research methods. ChapterⅡpresents and evaluates the existing research results on the relevant theories about cultural integration that are trans-culture administration theory and culture integration theory. In ChapterⅢthe paper gives a elaborate description of the case and then chapterⅣanalyses the case from the perspective of cultural integration comprehensively, deeply, systemically on the base of description. ChapterⅤpropose some reference and inspiration for other Chinese enterprises: Assess the cultural differences carefully, establish the integration plans advance, implement these plans as soon as possible, keep continued and frank communication with Labor Union, focus on culture integration for a long time, monitor senior managers, set up a special position for a full-time integration manager.