Study On Bright Food Group’s M&A Of Weetabix

Nowadays, as the enterprises’main approach to develop international market, cross-border mergers and acquisitions play an important role in global economic integration. In the past, most of the cases have taken place between the US and Europe, indicating their frequent economic interpenetration. Meanwhile, their mutual integration is being strengthened as well. Despite the wide spread of 2009 financial crisis, Cross-border M&A in China has reached a new peak thanks to its rapid development in recent years. However, some problems, such as Chinese enterprises’ lack of profound understanding towards cross-border M&A and their late start of transnational merger experience, still exist. In that case, it is of great significance to deepen the research on relevant problems and propose some reasonable solutions.Case study serves as this paper’s methodology by choosing the case of experienced Bright Food Group’s M&A on Weetabix. Based on the review of related documents and theories at home and abroad, this paper explains the process of Bright Food Group’s M&A on Weetabix in detail, discusses its motives and risks, and analyzes its problems, which include the deficiency of international development, indefinite property rights under state-owned enterprises background, and risk management mechanism without established systems as well as lack of M&A pricing experience, high acquisition intermediation costs, difficult M&A caused by food safety issues and the complicated government approval process, imperfect relevant laws. At last, this paper proposes some practical suggestions. Such as enterprises need to draft more scientific international development strategies, loosen their connections with state-owned background, and establish a complete risk management mechanism of cross-border M&A as well as government needs to support professional domestic intermediaries with great efforts, strengthen supervision on food safety and puts forward requirements for the government to simplify its approval procedure, perfect relevant laws. Through these measures, other cross-border M&A cases of Chinese enterprises can be provided with precious experience and lessons.