Cross-border Mergers And Acquisitions Wave Of Foreign Mergers And Acquisitions Research

Since 1990s, FDI inflows to China becomes more and more. It plays an important role in theeconomy growth of our country. Especially these years, M&A becomes the central form of FDI and capitalflow of M&A accounts for 80% of the whole capital flow in the world. Nevertheless in our country theproportion is only 5-6%. As more and more FDI flow into our country, M&A amount will increase rapidly.At the same time, since Multinational Corporation needs to occupy local markets and acquirecompetitive advantage in its industry, the most effective method to realize it is M&A;On the other hand,the gradual opening of Chinese capital market increases the development of cross-border M&A. ThereforeChina will receive a period in which M&A rises fast.We now must envisage and resolve the following questions: how do we reply the wave ofcross-border M&A at hand? How do we utilize FDI in the form of M&A much better? Hence we muststudy the trend of the development of cross-border M&A and discuss the primary rule of cross-borderM&A in order to utilize FDI more effective.There are 5 chapters in the paper. Chapter 1 introduces the basic definition and characters, includingthe manner, type and motivation of M&A and the difference between M&A and Greenfield investment;Chapter 2 expatiates the status and the trend of cross-border M&A in a region or in an industry of theglobal world;Chapter 3 introduces the circumstance of cross-border M&A in China from the point of viewof character and trend of M&A;Chapter 4 analyzes the problem that M&A encounters during thedevelopment in China, involving operation process, obstacle of law and regulation system and etc., andindicates adverse effects that cross-border M&A may bring;Chapter 5 summarizes the above analysis andrender the policy suggestion of cross-border M&A in China.