Study On Overseas M&A And Integration Of China’s Automobile Enterprise

With the development of the globalization, the competition between enterprises is increasingly globalization. Mergers and acquisitions become a kind of common way for enterprises to compete and expand. In order to pursuit the economies of scale and compete effectively, China’s enterprises actively go abroad for a larger market,more excellent talents and better technology.This paper mainly studies the overseas M&A and integration problems in the automobile enterprises in our country. And Geely’s acquisition of Volvo was a typical case in auto industry. Therefore, in this paper we explore the motivation and problems of China’s automobile enterprises overseas mergers and acquisitions and make some suggestions. In this paper, we first define the concept of M&A and introduces the relevant theories of M&A, including motivation theories and integration theories. Introducing those theories is mainly used for analyzing the case of Geely’s acquisition of Volvo. Then, we make a brief introduction of the situation of our country’s automobile enterprises’ M & A abroad. After that,we present the process of Geely’s acquisition of Volvo to our readers while we analyze the motivation of Geely’s acquisition of Volvo. Subsequently, we study and evaluate the whole process of Geely’s acquisition of Volvo, which include the preparation before the acquisition, the threats in the process and the integration after the acquisition. At the last, in this paper we put forward various suggestions for enterprises’ oversea M&A after having a deep understanding of Geely’s acquisition of Volvo. It include:have a clear goal and know what you want; hire professional people to build a M&A team; grasp the external opportunities, strive for various support; make your financing channels diversity; have a through and comprehensive integration strategy. Finally, we made a summary of this paper.