Analysis Of The Risk And The Countermeasure Of Cross-board M&A Of Energy And Resources Enterprise

With the rapid growth of China’s economy and the acceleration of the economicintegration process of the world,more and more Chinese enterprises join in the process ofinternationalization. Compared with the merger and acquisition process of foreignTransnational Corporations,Chinese enterprises have a very short transnational mergerand acquisition history and are relative lack of experience.However,only when Chineseenterprises take active part in the fierce competition of international market andaccumulate experience can they make greater contribution to Chinese transnationalM&A.From the cases of energy resources enterprises’ cross-border M&A,in recentyears,China’s enterprises have seen a low rate of success.Chinese enterprises haveinadequate experience of cross-border M&A,as well as weakness of risk consciousnessand lack of ability to copy with the crisis.This dissertation begin with the introduction ofconnotation,motivation and risks of cross-border M&A and the risk of M&A is dividedinto the political risk,cultural risk,market risk,financial risk and strategy risk,followed bythe analysis of the current situation of energy resource enterprises in transnational mergerand acquisition and the trend of cross-border M&A.followed by the analysis of thecurrent situation of energy resource enterprises`M&A,and then through the comparisonof two opposing cases,including the successful case of CNOOC acquisition of Nickersonand the failure case of CHINALCO acquisition of Rio,finally,summing with theenlightenment and suggestions about the strategies China’s enterprise and governmentought to formulate that the government should create a good policy environment andenterprises should constantly improve M&A strategies.This text aim to providessuggestions to Chinese enterprises’ wider and deeper involvement in internationalcompetition.This dissertation is intended to provide the theoretical support for more Chineseenterprises to attend the international market on the basis of formulating some valuedadvices according to the risk analysis and strategy-making of the cross-border M&A ofChina’s energy resource enterprises.