Research Of Overseas Merger&acquisition By China’s Coal Enterprises

Shortage of domestic resources is becoming the big shackles for the resources-basedenetrprises. We must acti“vely carry out go global" strategy and make M&A overseasresources to migitage this problem. Currently, with the rapid development of China’seconomy，demands for coal have signiifcantly increased and the coal price is speedilyincreased. Moreover, domestic major coal-producing provinces have put more and moreattached conditions on enetrprises from other priovinces that are ready to develop resources inthese places. For instance, the coal mined from local provinces must achieve local utilizationso as to increase the value added, making it harder for these enterprises to acquire resourcesthus increased investment. At present, a large number of vast well-equipped coal ifelds inShaanxi, Shanxi and Inner Mongolia are nearly completely obtained by large-scale coalgroups or electric power groups, such as, China Shenhua Energy and China Coal Energy. As aresult, acquring resources overseas has become an essential way for many coal producingenetrprises to achieve sustainable development.Based on the development of global energy strategy and the trends of global mineralresources mergers by large multinational companies, the article states basic concept, basictheory and the cause of overseas mergers，it also discusses the necessity and importance ofoverseas mergers for China’s coal enetrprises in post-ifnancial crises. The article takes theoverseas merger of Yanzhou Coal Mining Company Limited (Yanzhou Coal) as a case,introducing the details of the acquisitions of overseas coal resources by Yanzhou Coal,systematically summarizing the successful experiences of overseas coal resources mergers byYanzhou Coal. The article indicates that Yanzhou Coal is the unique company in China, whichhas listed in four stock exchanges and successfully built and developed the platform ofoverseas operating and set the stage for the space of international development. As we see,under the situation of the increase of cost of overseas coal resources, through the accuratejudgment of the economy globalization, Yanzhou Coal has succeeded to develop overseas.Meanwhile, the article sets forth the strategy and recommendation for the major problems such as political environment, laws and custom and subsequent integration in the overseasmergers of China’s coal enterprises. The article puts forward a couple of important matterssuch as strengthening analysis of international operation environment in advance, carefullychoosing related mergers object, seriously analyzing risks and intensifying control ability indecision making for the proposed oversea mergers of coal subject. The article also bringsforward ideas such as intensif’ying enterprises interior quality, setting up effective acquisitionteam, competing orderly and strengthening government support by policy for overseasacquisition of China’s coal enetrprises and China’s national energy strategy.