Research On The Problems, Key Factors And Supporting System Of Cross - Border M & A Of Chinese Resource - Based Enterprises

Since the international market opening has unprecedentedly improved, and the competition among enterprises has become more fiercely with the pace of global economic integration accelerating. The tentacles of international large-scale enterprises extend from domestic to overseas to scramble for the world market. The powerful alliances between enterprises and the strategic merger and acquisition (Hereinafter M&A for short) are the ideal path to achieve such aim. Providing be able to accomplish great deeds on the grounds of globalization, cross-border M&A is the only way, therefore it has been got the height than ever before. Until now, there have been five times of the global wave of merger and acquisition.Following with the economic take-off of China and strategic guide of "Going-out" of Chinese government, the numbers of multinational M&A are obviously increased. Thanks to the scales being rapidly strengthened, regions being gradually expanded and quality being heavily improved, it is becoming the hot topic of present economic society.The cross-border M&A of Chinese enterprises is accounting for over80%of international direct investment, which is becoming the main method of international direct investment since2000. The Chinese resources enterprises have been marched at the head of overseas expansion due to the national strategic requirement and their own development. The scale and the proportion of money of resources enterprises are largest in the cases of multinational M&A of Chinese enterprises, which average amount is approximately1.3＄billion. However the failure rate of overseas investment is up to20%comparing with American,Britain and other developed countries. Apart from in management personnel, capital operation and other aspects, having gap with the developed countries’ enterprises, most Chinese resources enterprises are facing the common problems mentioned-below, such as, risk prevention awareness not strong, localization operation not in place and lacking of crisis consciousness.This paper is trying to seek the existing problems and successful critical factors and do the tentative study on supporting system of cross-border M&A based on the background of development status of Chinese resources enterprises, analyzing the motives, comparing the successful cases with the failure ones of Chinese resources enterprises’cross-border M&A, and especially evidenced by the successful M&A cases of Yunnan Metallurgical Group Co., Ltd. which the author has been worked for. It is discussed the topic’s background and significance in the introduction part. Summary of theoretical research on multinational M&A at domestic and overseas provide the base theoretically for the study. It is also summarized that the background and development progress of Cross-border M&A of Chinese enterprises, especially the Chinese resources ones. This paper analyses the existing problems and the critical factors for successful multinational M&A focusing on the seven aspects. It is also set up the supporting system aiming at the existing problems to increase the capability and success rate of multinational M&A of Chinese resources enterprises.