Legal Risk And Prevention Of Chinese Enterprises Overseas M&A

It has been ten years since China joined the WTO. Past ten more years,the worldeconomy has undergone tremendous changes, China’s economy has been graduallyintegrated into the international market. As a modern mode of operation of the capital,overseas acquisitions has increasingly become an effective means to achieve ourbusiness transformation and international operations. In recent years, the China’soverseas M&A momentum developed rapidly, but it wasn’t easily. China’senterprises overseas mergers and acquisitions is still in the initial stage, affected by avariety of internal and external environmental factors, lack of experience, thepractice of overseas mergers and acquisitions is still difficulty and faces much risk.This paper from the perspective of the law, combined with the practice of overseasmergers and acquisitions business in China, and analysis of legal risks in overseasmergers and acquisitions of companies that exist, and measures to prevent the risk ofpoints raised in this article, for Chinese enterprises, overseas mergers and acquisitionsare likely to be encountered Legal risk reference. Text using the context of theInterpretation Act, literature research and case study. By the relevant laws, regulationsand policies of the study, to understand the development of the situation in ourcountry and abroad, and the government’s intention to develop a dynamicunderstanding of the relevant legal defects and gaps. By reference, read aboutinternational investments and overseas acquisitions related monographs and papers,mainly focused on domestic literature, the characteristics of the current situation ofChina’s overseas mergers and acquisitions, legal risks facing the in-depth discussion.In recent years, cross-border mergers and acquisitions of Chinese enterprises haveChina Minerals acquisition of OZ Minerals, Volvo and other success stories, but alsohas some failed campaign,such as a CNOOC acquainted Unocal, TCL acquiredThomson. Through the analysis of specific cases, we can find the most direct andcommon problems faced by overseas mergers and acquisitions, from which, we alsocan conclude some experience.The paper mainly research the risks overseas acquisitions faces, the cause of theoverseas legal risks.In addition to the boundaries is fuzzy between government actionand corporate behavior. The internal cause is that enterprise pay more attention onshort-term financial benefits,lacking thinking of core competence-oriented,then lacking of effective merger integration measures. When analysis,without classifyingThe M&A risk according to the standard,then lack of clear conclusions. Based on thepresence of Chinese enterprises overseas mergers and acquisitions legal riskcategories and impact on Chinese enterprises to carry out the analysis, the end of thepaper make a few precautions the risk of legal action overseas acquisitions to furtherimprove the theory of overseas mergers and acquisitions, and provide theoreticalguidance for Chinese enterprises overseas mergers and acquisitions practice, so thatChinese enterprises overseas acquisitions gradually rational and better participate ininternational competition, the formation of an international influential business group,and the establishment of a suitable Chinese enterprises overseas M&A riskprevention mechanism.