A Study Of Foreign M&A Performance Of China’s Automobile Industry

Since the1990s, the world’s growing wave of mergers and acquisitions, cross-border M&A has become a multinational foreign direct investment in the mainstream, but because of policies and other factors, the cross-border mergers and acquisitions in China to use small share of FDI. With China’s accession to the WTO, domestic enterprises will face unprecedented pressures and opportunities, a large number of multinational companies from its global strategy, is a planned and step-by-step acquisition of Chinese enterprises, against this trend, China’s enterprises should seize the opportunity, Go with the tide through the promotion of cross-border mergers and acquisitions of state-owned enterprise reform, development and growth of their own, have become before us a letter of the new issues to be resolved. In the world of the fifth wave of mergers and acquisitions driven, along with the world’s industrial structure adjustment and transfer of a breakthrough in China’s foreign investment through joint ventures or wholly-based business model, step by step to carry out acts of mergers and acquisitions and new research. China’s auto industry in the long-term joint venture has exposed many shortcomings, the use of foreign capital to promote the development of the automobile industry has become an urgent need to address the problem.China’s auto industry since the reform and opening-up has been to strengthen cooperation with foreign companies. In recent years, as the world auto industry stagnated situation, a serious over-capacity, traditional markets become more saturated, the international automobile giants have their sights on the broad market and relatively fast economic development of China, foreign investment in China’s automobile industry growing trend of cross-border M&A Strengthening. The reason why foreign investment in China’s automotive industry choice for cross-border mergers and acquisitions, partly because of our high-quality and abundant supply of production factors, and growing larger car market, foreign investment policy, such as loosening environmental factors; On the other hand, For the rapid occupation of the Chinese market, a competitive advantage for companies to purchase low-cost assets, such as driving forces.This article is the head of the research to explore how to deal with foreign investment in China’s automobile industry cross-border mergers and acquisitions. In order to achieve this purpose, the authors used the theory and practice ways to define the status of the auto industry, the concept of cross-border mergers and acquisitions, cross-border M&A activities as a result of the theory, China’s auto industry, auto industry environment, in-depth analysis of the foreign investment in exploration China’s auto industry mergers and acquisitions as a result of the move. From the auto industry mergers and acquisitions research at home and abroad, tend to focus only on the M&A trend mergers and acquisitions and the integration of research, and mergers and acquisitions have on the cause and effect of the study is relatively small. This article is based on the needs of the West in the M&A theory defined on the basis of the combination of China’s automobile industry development, foreign investment in China’s automobile industry of cross-border M&motivation to carry out an in-depth study on M&A process and the effects of the corresponding Carried out a comprehensive analysis of the response.