The Risk Study On Zoomlion Acquiring CIFA Of Italy

After the economic crisis in 2008, with the transformation of the world international economic status, Chinese companies gradually enter into the overseas market to expand overseas market and improve the international competitiveness. Chinese manufacturing industry is the mainstay in transnational mergers and acquisitions.Because of lacking of technology innovation ability, excellent senior management personnel, backward management conceptd and brand, machinery manufacturing companies which account for large in Chinese manufacturing industry, tend to select management oriented and brand sales oriented target enterprises in transnational mergers and acquisitions. The target enterprises with one or more of these high quality resources and generally in the developed countries,increase the cost of the manufacturing industry in our country transnational mergers and acquisitions and heightened the risk of cross-border m&a. Many manufacturing enterprises in China lacking of preparation of transnational m&a, failed in mergers and acquisitions. There are also a large part of enterprises due to the merger,cannot integrate both sides suffered big losses. Therefore, Chinese manufacturing industry in cross-border m&a must first analysis the risk of enterprise and study hard international effective measures to control risk of transnational m&a and apply to their own businesses.This article selected case that Zoomlion purchased CIFA in Italy,is one of the typical cases of transnational merger and acquisition of China manufacturing and is one of the transnational merger and acquisition of state-owned enterprises successful cases and one of the disadvantages of superior enterprises for the purchase of a business case. In the situation that the transnational merger and acquisition of universal enterprises,especially Chinese manufacturing industry enterprises occurs so often and has a high rate of failure.So it is worth for us to explore the the reasons and study how to identify and prevent risks.In this paper, according to the three stages of the risk of cross-border m&a,I sort foreign and domestic researchers of various theories on the cross-border m&a risk.Taking the Zoomlion purchase CIFA,a famous brand in Italy as the breakthrough point, analyzed the the risk of the case of mergers and acquisitions in the early phase information collection and decision-making,the m&a risks in the middle phase of both sides negotiation and the main risk of m&a integration in late stage. Then according to these conclusion sums up the main risk of zoomlion defense risk and based on this, I advance the measures and experience to control the risk for transnational merger and acquisition of manufacturing enterprises in our country.