A Study On Overseas M & A Of Chinese Enterprises

In the recent years, the overseas mergers and acquisitions conducted by Chinese firms have been on the rise year by year in terms of both the total number and value of transactions. Meanwhile, various problems arise. In some cases, the merger or acquisition is not accomplished. In other cases, the Chinese firm cannot integrate well with the merged or acquired foreign firm, with the result that the merger or acquisition turn out to be a failure.We are indebted to the western M&A theories, which in turn originated in the practice and experience of the western countries over a century. Good reference as they may be, the western M&A theories do not necessarily match the circumstances of Chinese firms, who make the same mistakes and pay the same dear costs as they did in the past.Therefore, it is of great realistic and theoretical significance that we study the issues in connection with the overseas mergers and acquisitions conducted by Chinese firms and encapsulate their experiences and lessons.This paper addresses the overseas mergers and acquisitions conducted by Chinese firms from a main perspective of the M&A history of Peruvian iron ores as well as a supporting perspective of the overseas mergers and acquisitions conducted by Chinese firms and worldwide multinational mergers and acquisitions.This paper starts with several questions concerning the motivation of M&A and overseas mergers and acquisitions conducted by Chinese firms. With those questions as the lead, the theory and practice of worldwide mergers and acquisitions and overseas mergers and acquisitions conducted by Chinese firms are introduced in brief. Then, the M&A development of Peruvian iron ores over six decades from1952to the present are discussed. Certain countermeasures and proposals are put forward for reference and enlightenment in terms of such macro dimensions as the trend of globalization, politics and law, investment security, as well as such micro dimensions as timing, M&A process, M&A agreement, M&A integration, cultural issues and trade union issues.