A Study On The Problems And Countermeasures Of Chinese Resources Enterprises Cross-border M&A

With the unceasing developing of economic globalization, the economic development of all countries demand more and more energy resources, this phenomenon lead to the dependence of resources is being strengthened constantly. The different of resource endowment, scarcity and irrefragable of resources, in this context, it is difficult to rely on national resources for its economic and social development, therefore, all countries in order to gain more resources are actively widen channels through the international market. Chinese energy demand is growing, the resources dependence continuously increasing, that was caused by our country’s economy is developing with high speed, industrialization and urbanization speed up continuously. Although China is a big country, resources reserves are abundant, but our country huge population results in that our country resources per capita is obviously lower than the world average level. Now, Chinese resource production capacity has not been able to meet the increasing resources consumption demand, with the pressure of high-speed economic growth and the huge population number, China’s demand for resources compared with other countries is more urgent. China’s situation of resources has been very serious.In the face of today’s so serious resources situation, a lot of Chinese resources enterprises have go abroad for foreign direct investment. However, in the global resources race background, more and more countries began to pay attention to overseas resources exploration, development and conscious to protect its own resources. Many countries made policy to encourage domestic resources enterprise to carry on the foreign direct investment, at the same time, also established very strict resources enterprise merger verification system to protect their own energy for economic sustainable development. The complex situation made many difficulties to the foreign invest resources enterprises, so the road of Chinese resources enterprises "going out" is not flat. In this context, further study of the problems and their causes during Chinese resources enterprises in the transnational merger and acquisition and then put forward the corresponding countermeasures from the government and the enterprise two angles, it has important significance to guide Chinese resources enterprises transnational M&A.This paper combines the theory and practice, analysis Chinese resources enterprise foreign direct investment motivation through summary Enterprise M&A theory, Foreign Direct investment and the severe resources situation. Using the method of case study analysis the problems and their causes during Chinese resources enterprises in the transnational merger and acquisition.There are five parts in this paper:The first part is the introduction. This part introduces the background and significance of this paper, makes a briefly expounded of research status at home and abroad, introduces the research content, framework and research methods, and points out the innovations and shortcomings.The second part analysis the theories that Chinese resources enterprise transnational M&A used. Firstly, define the concept of resourced enterprises. Secondly, the theory basis including foreign direct investment theory (the monopoly advantage theory, internalization theory, international production compromise theory) and enterprise M&A theory (collaborative efficiency theory, market power theory, transaction cost theory).The third part analyses the motivation, situation and characteristics of Chinese resources enterprises transnational M&A. Using a large number of economic data, charts. The practice motivations mainly are:gain overseas resources, reduce the resource dependence on foreign, and fight for the international resource pricing. Using the investment location for classification standard, Chinese resources enterprise cross-border mergers and acquisitions will divide into:the Middle East and Africa, central Asia and commonwealth of independent states country, America and the asia-pacific region. Introduce the situation of Chinese resources enterprises transnational merger and acquisition in different area and the oil geopolitical situation of China. And then summarizes the characteristic of Chinese resources enterprises transnational merger and acquisition from the overall Angle.The fourth part is the problems and cause existing in Chinese resources enterprises transnational M&A. Through the failure cases summary Chinese resources enterprises existing problems:(1) The enterprise lack of risk prevention and risk control ability;(2) The choice of timing of M&A and public relations means;(3) The lack of comprehensive and in-depth understanding to the host country and M&A target enterprises. At the same time, enumerate the in-depth cause of the problems:(1) The external resistance and risk encountering in the process of merger and acquisition;(2) The international competitiveness of Chinese resources enterprise is weak, to provide direction for the fifth part countermeasures and Suggestions;(3) The lack of high quality talent during transnational M&A.The last part puts forward countermeasures and Suggestions. According to the fourth chapter analysis combined with the present situation of resource-based enterprise transnational M&A put forward countermeasures and Suggestions are as follows:(1) Establish a risk prevention mechanism, respectively from the enterprise and government two aspects complete this risk prevention mechanism,(2) Improve the success rate of M&A strength to ensure that mergers and acquisitions, specific include looking for "partner", form M&A league and improve the merger and acquisition operation level;(3) Pay attention to international talents;(4) Different location using different M&A strategy.