| In the1980s, with the Bank of China acquired the Macau Tai Fung Bank, China’scommercial banks began to expand overseas M&A activity. However, before the2000s, Chinesecommercial banks overseas M&A had many limitations: a single target area, a small number ofmerger cases and low financial deals etc. In the21st century, Chinese commercial banksaccelerate the pace of overseas acquisitions, especially the occurred of2007subprime crisis,provided an opportunity for Chinese banks overseas M&A. Not only the state-owned banksfrequently mergers with large-scale; but also MinSheng, ZhaoShang, PingAn and other smallcommercial banks have captured the opportunity for overseas expansion.Chinese commercial banks are becoming more frequently in overseas M&A activity, largerthe transaction amount and diversified the subject. But there are still many failure case, such asthe MinSheng’s acquisition of United Bank, PingAn merger the Fortis Bank, ultimately fail bythe huge loss. As overseas M&A increasingly, domestic commercial banks will face variouschallenges. The choice of acquisition targets become a prime challenges and risks. The selectacquisition targets are generally based on the bank’s established strategy and practicalmotivation.This paper focus on the phenomenon of Chinese commercial banks frequently carry outoverseas M&A activities after the subprime crisis, and bases on this foundation, collects overseasM&A case of Chinese commercial banks in the subprime crisis, takes the ICBC merger theStandard Bank of South Africa as a specific cases, study its acquisition motivation fromglobalization strategy, supervision, ability capture and capital allocation for detailed analysis,Hoping to sum up the successful experience from the ICBC merger case. Finally, from the caseanalysis, this paper attempts to summarize the acquisition targets selection strategy base ondifferent motivation, to provide reference for future banks overseas M&A... |
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